Tesla falls after Baird cuts to neutral on Model X production

Tesla Motors Inc. fell the most in six weeks after Robert W. Baird & Co. cut its earnings estimates for the electric-car maker and the target price for its stock. Analyst Ben Kallo said it remains uncertain how quickly the company will be able to produce significant volume of its Model X sport utility vehicle.

Tesla slid 3.6 percent to $232.88 at 12:10 p.m. New York time after declining as much as 5.1 percent, the steepest intraday drop since Aug. 24. The shares had gained 8.6 percent this year through Tuesday.

The company last week said it delivered 11,580 vehicles in the third quarter, meeting its target after Chief Executive Officer Elon Musk handed over the first Model X SUVs just before the end of the period.

Manufacturing complications with the SUV could reduce output of the Model S, leading Kallo to cut his estimate for 2016 earnings per share to $2 from $3. He trimmed his 12-month price target for the shares to $282 from $335 and revised his rating to neutral from outperform.

"We do not believe the number of near-term X deliveries is important, but we are cautious on the X production ramp, as having the X on the same final assembly line as the S could impact TSLA's total vehicle production if the X has more problems than expected," he said in a note to clients.