Wall Street reacted to the news Tesla Motors Inc. has started producing battery cells at the battery factory outside Reno, Nev., with a mix of praise and worry, sending the electric-car maker’s stock lower on Thursday.

Tesla TSLA, -1.77% earlier this week hosted a tour and a Q&A session for analysts with CEO Elon Musk, and the analysts notes started pouring in.

Musk also touched briefly on the Model 3, the mass-market, all-electric sedan Tesla hopes to start selling later this year, and even on his company’s prospects in relation to the new Trump administration, according to the analyst reports.

Read more:Tesla starts Gigafactory’s battery cell production

For analysts at Morgan Stanley, known bulls on Tesla, the battery factory tour made “the dream tangible for providers of capital.” Even the most brief glimpse into the factory is meant to increase investor’s understanding of the company and ultimately lower Tesla’s cost of capital, they said.

Tesla has said the first cells to be produced at the Nevada factory will be used in its energy-storage products and in the Model 3 by the second quarter. That car, expected to cost around $35,000, or about half the price of a starter Model S, Tesla’s luxury sedan, is crucial for Tesla’s plan to become a mass-market car maker and turn consistently profitable.

Musk told analysts Tesla feels good about the factory’s pace of progress with Model 3 components, and alluded to more specific Model 3 announcements later on, according to the Morgan Stanley analysts.

Musk also alluded to the Trump presidency and how the president-elect has a “strong emphasis on U.S. manufacturing and so does Tesla, the Morgan Stanley analysts said.

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Morgan Stanley analysts have a $242 price target on Tesla shares, which represents 6% upside over Wednesday’s stock close.

Analysts at Goldman Sachs, who have been more critical of Tesla in the past, expressed concern about Tesla’s lack of details regarding expectations of production increase and the company’s capital requirements.

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While the tour was helpful in illustrating the cells’ manufacturing process, Tesla was “more guarded” on the expected production ramp in the second half of the year, they said.

“Tesla was confident it ‘could sell every Model 3 that it makes’ (and) continued to focus on manufacturing gains that it believes it can achieve by ’making the machine that makes the machine,’ but details on timing, capex requirements, and vehicle cost reductions remain sparse,” they said.

Goldman analysts have a $190 price target on Tesla stock, which represents 16% downside from Wednesday’s close.

See also:Tesla misses vehicle sales goal despite late surge

Battery production is one piece of Tesla’s puzzle, analysts at Cowen said in their note.

Concerns remain, however, “about the Model 3 ramp, SolarCity execution, cash needs in 2017 and 2018 as the Model 3 ramps and potentially Gigafactories 2 and 3 are built in Europe and China,” they said. “We also are concerned that the Model S segment may be showing signs of saturation as quarterly sales figures have been erratic and this segment as well as the Model 3 class will start to see more competition in late 2017 and beyond.”

See: Here’s why Tesla is Baird’s top stock-market pick for 2017

Cowen analysts also lowered their expectations for Tesla’s 2016 revenue to $6.83 billion from $7.24 billion, and predicted a wider per-share loss for the company in the year, of $2.76 a share from $2.62 a share, to account for the delivery shortfall earlier this week.

They kept their price target on Tesla shares at $155, which represents 32% downside from Wednesday’s close.