Tesla shares turned negative Wednesday morning, a day after CEO Elon Musk said the electric auto maker has a "decent shot at a record quarter on every level."

"I want to be clear: There is not a demand problem," Musk said at the company's annual meeting with shareholders on Tuesday evening. "Sales have far exceeded production and production has been pretty good so we're actually doing well."

Tesla shares had jumped 4% in premarket trading Wednesday, before turning negative. By Wednesday's close, the stock was down 3.6%

Musk also said "it won't be long" before the company has an electric car with a range of 400 miles.

In a note to investors after the meeting, Cowen questioned Musk's confidence, saying "basic microeconomic theory would suggest that goods or services that don't have a demand problem don't see their prices lowered by half a dozen times in 4-5 months." Cowen has an underperform rating and a $140 price target on Tesla shares.