Wall Street Waves Caution Flag on Tesla Plant as Investors Snap Up Shares

Touted as the future of high-tech manufacturing, Tesla Motors Inc.'s Gigafactory was praised far and wide after it began production Wednesday, but Wall Street analysts had a different take.

Goldman Sachs Group Inc. and Morgan Stanley were among firms raising concern that the facility did little to change their views on the company's short-term financial prospects just a day after the electric-car maker reported fourth-quarter deliveries that missed its own forecasts.

"Overall we found the tour helpful in illustrating the layout and process for manufacturing lithium ion battery cells and packs for its automotive and energy products,'' the team at Goldman, led by David Tamberrino, write. "However, there was a lack of quantitative updates for 2017 and the ramp expectations.''

The partial opening of the Nevada factory marked a major milestone for Tesla, as it started production of battery cells that will power energy storage products and eventually its Model 3 electric car. While investors have sent Tesla shares soaring more than 20 percent in the past month, partly in anticipation of the factory's debut, Wall Street's focus remained fixed on profits, with Morgan Stanley's Adam Jonas raising concern over the factory's costs.