Instinet analyst Romit Shah, formerly the biggest Tesla Inc. TSLA, -2.12% bull on Wall Street, lowered his price target on Tesla shares to $420 from $500 on Thursday. Shares are down 1.6% in Thursday morning trading. The lowered target reflects "Model 3 production constraints that have lingered beyond our initial expectations," as well as reduced multiples for other major tech names, including Amazon.com Inc. AMZN, -1.94% Facebook Inc. FB, +3.18% Apple Inc. AAPL, +1.52% and Nvidia Corp. NVDA, +2.38% The new target also takes into account "a forecasted $3 billion capital raise at $250 per share (7% dilutive to current share count)." Shah maintained his buy rating on the stock, partly due to the "inferior competitive landscape" for electronic vehicles. Shares of Tesla are down 9% over the past 12 months, while the S&P 500 SPX, +0.64% has gained 11%.