Tesla Stock Plunges As Analyst Calls 'Code Red' On Car-Maker's Issues
BURLINGAME (KPIX 5) -- Though it's all-electric and a status symbol in Silicon Valley and beyond, investors could be souring on Tesla after one Wall Street analyst issued a "code red" on the company for not meeting internal production goals and getting distracted in side ventures.
For Russell Hancock, the president and CEO of Joint Venture Silicon Valley, the issue is the assembly line.
"They've set big targets. They themselves set those targets, not externally. So when they fail to meet targets that they themselves set that sends a bad signal to investors. It also sends a signal that there are issues here with internal management," Hancock said.
Hancock says this may be a warning shot across the bow that change is needed at the company, perhaps even all the way up to the very top, with CEO Elon Musk himself.
"I think shareholders, investors are saying this is product that is world changing, maybe now we need some adult supervision--doing the things that Detroit has done for a very long time."
Tesla may miss their own internal production numbers by as many as 60,000 vehicles.
KPIX 5 reached out to Tesla for comment, but has not heard back.