Analyst's comment leaves a dent in Tesla stock

Tesla Motors Inc. stocks fell shortly after the market opened Thursday by 2.1 percent to $225.68 a share following comments made by a Morgan Stanley analyst that the company’s use of cash was “eye watering.”

Tesla announced an adjusted loss of 36 cents a share Wednesday after the market close,d also stating its cash assets have fallen 21 percent since 2014 as it invests in a Nevada-based battery factory and further development of its SUV, Model X.

Analyst Adam Jonas said the burn raises stakes for Tesla to deliver quality products on time, and the company would sap its remaining cash supply of $1.51 billion in three quarters at the current rate.

Company CEO Elon Musk reassured investors the company will meet its 55,000 production model target for the year with increased output in the fourth quarter. The company expects to deliver between 10,000 and 11,000 Model S sedans in the second quarter, leaving some analysts speculating Tesla will fill the gap with ramped-up production of Model X.

Read more from Bloomberg Business.