Tesla Inc. (NASDAQ: TSLA) shares fell on Tuesday after Morgan Stanley cut its target for the electric car company, citing concerns on the company’s profitability.

According to CNBC, Morgan Stanley’s analyst Adam Jonas cut his price target for Tesla shares to $291 from 376. He said the potential manufacturing issues may have an impact on the profitability of the vehicle. He now expected long-term operating profit margin forecast for Tesla to 9.8 percent from 14.3 percent.

"We are making material reductions to our earnings estimates to reflect lingering manufacturing issues with the Model 3. It is our view that the challenges in ramping up Model 3 production reflect fundamental issues of vehicle design, manufacturing process, and automation levels that can weigh against the profitability of the vehicle." Jonas said in a note to clients Tuesday, according to CNBC.

Tesla shares fell 2.61 percent to $284.3 in the early trading on Tuesday.

On the same day, electric car blog Electrek reported that Tesla may produce more than 500 vehicles per day this week, citing a leaked email from CEO Elon Musk to employees.

“It is looking quite likely that we will exceed 500 vehicles per day across all Model 3 production zones this week.” The CEO wrote in the email, according to Electrek.

Tesla has been struggling to ramp up its production for Model 3. Investors expected Tesla to reach a production of 5,000 model 3 per week by the end of the quarter.