STORY: Shares of Tesla sank on Tuesday, after Wall Street analysts said the electric car maker will need to rethink its production plans to protect its profits, after the company run by the world's richest person reported a fall in quarterly deliveries for the first time in two years.

Tesla said on Saturday that it delivered less than 255,000 vehicles in the second quarter, down about 18% from the first quarter.

Tough health restrictions in China hit production at Tesla's largest factory in Shanghai. That, coupled with supply chain snarls at its newer facilities in Texas and Germany, as well as a spike in costs for battery metals led the run-up to a gloomy quarter.

Analysts from JPMorgan, which cut its price target on the company's shares, said Tesla faced "execution issues at [its] new factories in Austin and Berlin."

Elon Musk himself recently described both factories as "gigantic money furnaces" that are losing billions of dollars.

But some analysts believe production and delivery volumes will pick up, with one senior equity analyst from CFRA Research saying that while "the Austin and Berlin plants are likely to remain a drag on bottom line results," they "see total volumes rebounding strongly in the second half of the year."