Tesla set to lose over $5 billion in value after pushing profit timeline

Shares of Tesla Inc fell 11 percent on Thursday and were set to knock off more than $5 billion in the electric carmaker’s market value, a day after it disappointed Wall Street by pushing its profit timeline once again, reports Trend citing to Reuters.
Analysts also focused on the impact of shrinking margins, a key challenge for the company in delivering a profit consistently.
"For Tesla to be more than niche, one of the core challenges will be for Tesla to improve its gross margin profile," a Credit Suisse analyst wrote in a research note.
Wedbush Securities cut its price target on the stock from $230 to $220, citing the softer margin profile.
The stock was down 11.34% at $234.84 before the opening bell, still 3% above the median price target of $227.5.
The delayed timeline on profitability also weighed on its $1.8 billion junk bond US166858275=, which debuted just shy of two years ago. In European trading, the bond dropped more than 2 full points in price, and its yield, which moves in the opposite direction, surged back above 8% for the first time since July 1.