More Model 3 Worries Weigh on Tesla Shares
Worries about production issues with Tesla’s much ballyhooed Model 3 auto weighed on the electric carmaker’s shares Monday. Tesla shares fell almost 4 percent to close at $342.94, after Barclays analyst Brian Johnson said in a research note Monday that delays in Model 3 production could deny Tesla its “iPhone moment” to come out with a product that brings higher-end electric cars to more of a mass consumer audience.
Johnson’s comments followed a Wall Street Journal report last Friday, which said Tesla was building parts of the Model 3 by hand. Tesla, itself, had earlier said it only produced 260 Model 3 cars in the third quarter, far short of the company’s stated goal of cranking out 1,500 of the vehicles during the three-month period.
Along with Tesla, security-software and technology company Symantec took it on the chin Monday, as its shares fell almost 4 percent, to close at $32.64. Cowen & Co. analyst Gregg Moskowitz cut his rating on Symantec’s stock to underperform, or sell, from market perform, on the grounds that the almost-20-percent gain in the company’s share price during the last month since the Equifax hacking debacle broke is overdone.
Symantec, which owns security-protection technology company LifeLock, has been seen as a possible beneficiary of the Equifax hack.
Other declines came from Yelp, Workday, GoPro and TiVo.
The tech-focused Nasdaq Composite Index slipped by 0.2 percent, to close at 6,579.73. The blue chip Dow Jones Industrial Average edged down by 0.1 percent, to finish the day at 22,761.07. The broad-based Standard & Poor’s 500 Index shed 0.2 percent, and closed at 2,544.73.