Elon Musk and company are not having the greatest start to 2016. Shares at Tesla dipped 3% on Tuesday, marking a nearly 20% downturn since the start of the year.
Shares at Tesla are now trading at $191, a far cry from the company’s $300 peak price in 2014.
Tesla’s most recent share drop came about after JPMorgan’s Ryan Brinkman shared a research note that shows his team reduced its expectations for Tesla’s fourth-quarter earnings.
The note specifically points to Tesla’s inability to deliver 4,000 Model X SUVs in the quarter.
JPMorgan is admittedly moving away from riskier bets, which explains at least part of its change in sentiment towards the automobile manufacturer.
CEO Elon Musk provided ambitious guidance on deliveries for 2015, claiming the company would delivers 55,000 vehicles — a mark Tesla missed.
Tesla, which will report its results next month, built about 500 Model X’s in total and delivered just over 200 in the fourth quarter.
Tesla says it was producing 250 Model X’s per week at the end of 2015 or 1,000 on the month and 3,000 on the quarter.
Elon Musk recently said electric vehicle sales are likely to suffer for many manufacturers as oil prices continue to slip. Musk believes his companies higher end offerings are immune to that drop in pricing.
Musk warns that electric cars that fail to deliver valuable tech upgrades will see numbers dwindle in the coming months and years ahead.