The reasons behind Tesla’s 12 percent stock decline this week

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After hitting all-time highs late last month, Tesla shares have plummeted 18 percent as of Thursday’s market open, due to a perfect storm of sales concerns, competition and the safety of its cars.

The EV titan’s stock was down 3 percent at the opening bell on Thursday, bringing losses for the week to 12 percent.

A number of Wall Street firms have expressed doubt over Tesla’s sales, with Goldman Sachs analyst David Tamberrino leading the charge yesterday after he lowered his six-month price target for Tesla to $180 from $190, a 49 percent downside from Monday’s close.

Tamberrino cited a slower sales growth and doubts over meeting lofty production goals as the reasoning behind his downgrading.

“We remain sell rated on shares of TSLA where we see potential for downside as the Model 3 launch curve undershoots the company’s production targets and as 2H17 margins likely disappoint,” Tamberrino wrote in a note to clients Wednesday. “This comes as demand for TSLA’s established products (Model S and Model X) appear to be plateauing slightly below a 100k annual run rate.”

Firms Bernstein, KeyBanc Capital and Cowen also expressed disappointment in the EV company.

“Tesla’s Q2 production and deliveries report raised more questions than answers, particularly about Model S and X demand,” Bernstein analyst Toni Sacconaghi wrote in a note to clients Wednesday, according to CNBC.

Also adding to Tesla’s woes is its increased competition in the field, with Volvo announcing yesterday that it will produce only electrified vehicles by 2019.

The company is the “first car company in the world to say that the pure internal combustion engine is going to evolve into the next stage of its development,” said David Ibison, SVP of Corporate Communications, in a press conference Wednesday.

The Volvo news came after a report that BMW will unveil an electric version of its 3-Series line of cars at the Munich Auto Show in September.

What seems to have been the final blow to TSLA today is the news that it missed the Insurance Institute for Highway Safety’s top safety rating.

Tesla’s 2017 Model S has missed the Insurance Institute for Highway Safety’s (IIHS) top-safety pick+ rating, citing issues with the small overlap front test. Tesla had made changes to the vehicle in January to fix issues in this area, but the IIHS test results show otherwise.

“Tesla made changes to the safety belt in vehicles built after January with the intent of reducing the dummy’s forward movement,” IIHS said in a statement today. “However, when IIHS tested the modified Model S, the same problem occurred, and the rating didn’t change.”

Tesla responded to the report, saying that Model S received the highest rating in IIHS’s crash testing in every category except in the overlap front crash test, where it received the second highest rating available. “IIHS and dozens of other private industry groups around the world have methods and motivations that suit their own subjective purposes,” said a spokesperson from Tesla.

Tesla hit its highest of highs last month, but now has been on a fairly consistent decline. Keep checking Teslarati for up-to-the-minute stock coverage as we see what the company’s shares do next.

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