Tesla's Stock Falls To 7-month Low After Morgan Stanley Cuts Model 3 Volume Estimates

Tesla Motors' stock slid 0.6% in morning trade Wednesday, and hit a seven-month low of $192.65 earlier in the session, after Morgan Stanley analyst Adam Jonas cut Model 3 volume estimates and his stock price target to $290 from $320. The stock is in danger of a sixth-straight decline, and 13th over the past 14 sessions. During that time, the stock has lost 21%. Jonas said he now expects total Model 3 deliveries of 297,000 units by 2020, compared with Tesla's frequently published target of 500,000 units. Through 2028, Jonas cut his Model 3 volume estimate by 48% to 400,000 units. Jonas said one reason he revisited his long-term volume assumptions is because of the recent progress made in internal combustion technology. He has also raised his average-transaction-price estimate for the Model 3 to a range of $55,000 to $60,000 from $40,000, to reflect the increasing likelihood that Tesla will have to cater to a smaller, more affluent customer.