Tesla stock declined after the company reported lower-than-expected quarterly performance. Tesla has remained among favorite automobile stocks during the past few quarters but the company has failed to improve its production levels. Last month, Tesla CEO Elon Musk commented about Tesla facing production bottlenecks. The company has failed to deliver on its promise of Model 3 delivery schedule.

Investors are still not concerned about quarterly numbers reported by Tesla but analysts are becoming skeptical about the company delivering on its promises. Elon Musk has managed to promote Tesla as a strong brand and people believe in the new technologies Tesla is developing. However, if Tesla fails to deliver vehicles as per schedule, the company could find it difficult to compete with competitors.

Earlier, Tesla had claimed that the company would be able to produce 10,000 Model 3 vehicles per week in near future. The company was also aiming at improving the production capacity to 5,000 Model 3 vehicles per week by end of year 2017. The 5,000 vehicles per week goal has been shifted to early 2018 and 10,000 Model 3 per week goal has been abandoned, the company informed.

The debt has mounted nearly 3 times from start of the year to $3.3 billion. Tesla is spending on improving its production capacity but considering mounting losses and debts, the financial ratios aren’t in favor of the company. This could lead to re-rating for Tesla stock, which has otherwise outperformed automobile stocks and market indices.

In an official statement, Tesla informed, “While we continue to make significant progress each week in fixing Model 3 bottlenecks, the nature of manufacturing challenges during a ramp such as this makes it difficult to predict exactly how long it will take for all bottlenecks to be cleared or when new ones will appear.”