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Shares of Tesla Motors, Inc. previously took a hit in the recent sessions after Goldman Sachs downgraded its rating for the electric car maker.

An investment bank analyst downgraded its outlook on the company’s stock from neutral to sell rating due to the looming uncertainties on Model 3 production, including SolarCity’s performance with the likelihood of raising more cash.  

Despite struggling with last year’s full-year profit, the stock rose about 50 percent in the last three months.

Subsequently, CEO Elon Musk said that the Fremont factory is set to ramp up over 5,000 Model 3 vehicles per week by the end of 2017. Meanwhile, the company is expecting to deliver both Model S and Model X vehicles between the range of 47,000 to 50,000 in the first half of the year.

According to Musk, making the designs simple is the key to a faster manufacturing of its Model 3. “A lot of the bells and whistles on a Model S and X are not present on a Model 3,” he added.

Hence, the low-cost electric sedan seemed to be Tesla’s first move towards a broader market, which can reach over 200 miles on a single charge, starting at $35,000, compared to its rival Chevy Bolt, that was priced around $37,500 with a 238 miles of range before federal and state rebates.   

About 500,000 vehicles are expected to be produced next year, in which Musk has re-assigned engineers to remake the plant and increase volume.

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In preparation of the Model 3, the electric car maker freeze manufacturing for a week in February. The company was reportedly just begun working with $5 million kick-start in projects at the main plant.         

Investment Firm: Skeptical on Tesla Slated Record

Investment firms such as Goldman Sachs and Barclays remained skeptical for the electric car maker’s pledges to hit the target vehicle numbers. The British financial service seemed to be confident that the Model 3 would not be delivered this year.     

However, R.W. Baird & Company analyst Ben Kallo suggests a bullish outlook on the company, citing that the new sedan manufacturing would give a lift to the electric car maker, along with the SolarCity merger, which gave a better-than-expected revenue estimates.

Meanwhile, Goldman Sachs analyst David Tamberrino claimed on a research note that Tesla’s Model 3 will be delayed, but declined to provide further details as to when the highly anticipated vehicle deliveries might fall in.     

The chart below illustrates Tesla Motors, Inc. stock’s movement in the wake of the highly anticipated target of the Model 3. The stock is currently trading at $248.05 in a light trading volume of 13263, near the new resistance of 248.00.  

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Conclusion

Given the most awaited deadline of Tesla’s Model 3, along with investors’ judgment that the company would not make it, shares are expected to decline. Hearing this, the electric car maker could also face a serious cash crunch if the target is not met.

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