One of Tesla Motors Inc (NASDAQ:TSLA)’s earliest investors has cut its stake in the automaker. Fidelity Investments has cut its stake from 15 percent to 9.61 percent, according to its recent filing with the Securities and Exchange Commission.

Tesla motors

Tesla position initiated in 2011

According to The Street, Fidelity accumulated its position in the company back in 2011 when most investors had not yet heard of it. At that time, the firm paid a sixth of what Tesla Motors Inc (NASDAQ:TSLA) shares are worth now. Today shares of Tesla rose more than 1 percent.

Analysts at The Street have a Sell rating on Tesla Motors Inc (NASDAQ:TSLA) for several reasons. They note that the automaker’s gross profit margin is not as high as they would like, at 30.28 percent. They said the automaker’s margin decreased from the same quarter a year ago, and its net profit margin of -7.52 percent is “significantly below that of the industry average.”

Other problem areas for Tesla

The analysts note that Tesla Motors Inc (NASDAQ:TSLA)’s return on equity greatly rose year over year, which shows strength. However, they said the automaker’s return on equity is significantly behind that of the S&P 500 and the industry average.

Although the automaker reported improved earnings per share in its most recently completed quarter, the analysts say its earnings have been “somewhat volatile recently.” They do believe it will grow earnings per share over the next year, however.

On the more positive side, they said Tesla Motors Inc (NASDAQ:TSLA)’s net income growth from the same quarter a year ago significantly beat that of the S&P 500 and the auto industry, rising 71.1 percent year over year. However, they said the company’s shares have risen 491.5 percent over the last year, and they see the risks of investing in Tesla as being too great compared for future upside potential even though its shares have gained significantly over the last year.