(Bloomberg) -- Tesla Inc. shares dropped as much as 10 percent on Wednesday after the company reported fourth-quarter Model 3 deliveries just below estimates and said it would lower the price of its cars, prompting at least one analyst to flag the selloff as “overdone.”

The electric vehicle maker said it would cut the price on its cars by $2,000, to help make up for U.S. buyers now being eligible for only a $3,750 federal tax credit for the next six months, half of what they previously received. “The optics of this decision are weighing on shares, which is not surprising,” Consumer Edge analyst James Albertine wrote in a note to clients, but “in the broader context of the staggering growth Tesla has executed in the past year” they are over-correcting on the news. The analyst said demand for Tesla vehicles, most notably the Model 3, remained strong leaving 2018 and entering 2019. “To us, demand is not an issue, nor is EV competition to this point,” Albertine added.

Read more: Tesla Sinks as Price Cuts Signal a Ceiling for Costlier Models

• Albertine, who has an equalweight rating and a price target of $350 on the company, noted that Tesla constantly tinkers with its retail strategy to benefit its customers
• The analyst would like to see Tesla hire a COO or Co-President to help cement the progress made to date and provide a better, potentially less volatile foundation for growth
• TSLA 14 buys, 10 holds, 14 sells; avg PT $343: Bloomberg data
• NOTE: Earlier, Tesla 4Q Deliveries ‘as Good as it Gets’ For a Few Qtrs: Nomura

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