Shares of Tesla have been on a roll recently with a 20% gain over the last three weeks. But some investors are trimming their positions today.
The stock dropped about 6.5% early Tuesday, and shares remained down 4.8% as of noon ET.
The selling pressure is due to worries about Tesla’s ability to make its Model 3 sedan.
The company has missed many of its production targets for the vehicle.
Tesla says it is on track to deliver about 5,000 Model 3s in the fourth quarter. That is a little more than half the number of the Model 3s it delivered in the first quarter, and a significant decline from the roughly 11,000 Model 3s delivered in the second quarter.
Tesla CFO acknowledged the shortfall in a call with analysts on Monday. He said that the company has been able to make progress in its production ramp and will achieve its target of 5,000 Model 3s per week by the end of the year.
But even if the company delivers about half the Model 3s it is targeting, it still won’t be able to meet the demand for the vehicle.