Here’s why these analysts are lukewarm on tech giants, Netflix, Inc. (NASDAQ:NFLX) and Tesla Motors Inc (NASDAQ:TSLA). Read below to find out why you may want to hold off on buying these stocks.

Netflix, Inc.

Needham analyst Laura Martin has downgraded her rating for NFLX following post-Brexit turmoil and slowing growth in European markets.

The analysts explains, “We lower our rating and 2H16 & FY17 NFLX estimates as we worry that Brexit adds fundamental risk that decelerating UK and EU GDP growth over the next 12-24 months will accelerate NFLX subscriber churn (cancelable at any time) or slow sub growth.” Martin believes that increased fundamental risks and EU proposed legal changes that would force Netflix to finance European-made films could drive up costs for the company and create moderate headwinds for the stock.

The analyst notes that Netflix finds itself between a rock and a hard place. If the company decides to exit European markets in order to avoid funding European made films, it will cause a substantial decrease in international subscriber growth. However, if the company decides not to leave these markets, it would have to heavily invest in funding these films, increasing costs.

The analyst downgrades Netflix to a Hold and does not provide a price target.

According to TipRanks, the consensus price target for NFLX is $120.88, marking a 23.46% upside from current prices. According to TipRanks analytics, 58% of analysts issue a Buy rating for NFLX, while 31% maintain a Hold rating, and the remaining 11% uphold a Sell rating for the stock.

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Tesla Motors Inc

Analyst Rod Lache of Deutsche Bank expressed his concerns regarding Tesla’s manufacturing after it missed its Q2 delivery guidance. Tesla only delivered 14,370 vehicles in teh second quarter, less than their forecast of 17,000, but the analyst believes this is due to the company’s ambitious expectations.

Tesla produced half of their total vehicles in Q2 during the last 4 weeks of the quarter, indicating Tesla’s recent steep increase in production. This has caused more than 5,000 customer ordered vehicles in-transit at the end of the quarter, over 2000 more than the end of Q1. Tesla ended the quarter making 2,000 vehicles a week and it expects to hit 2,400 a week by the fourth quarter. If Tesla could pull this off they would be able to hit their forecast total for 2016, a goal investors have called unrealistic.

The analyst is skeptical that Tesla will be able real its goal because of difficulties in its Model X production. Estimates have Tesla’s uptime, the time when machines are functional, as low as 50%, extremely low for an automaker.

Lache explains that while he is disappointed that Tesla missed its forecasts, he is not surprised. He notes that aggressive plans are “part of Tesla’s DNA,” and that missing some of these plans are expected. The analyst adds that there are reasons to believe Tesla can execute on its next phase of growth, including the Model 3’s simpler design.

The analyst lays out three potential factors that would propel the stock: Tesla making its business plan more well known, executing this plan, and then achieving “execution milestones”.

Lache maintained his Hold rating for Tesla with a price target of $290, marking a 35.5% increase from current levels. The analyst has a success rate of 65% with an average return of 14.6% per recommendation.

According to TipRanks, out of the 20 analysts who have rated the company in the past 3 months, 40% gave a Buy rating, 40% gave a Hold rating and 20% gave a Sell rating. The average 12-month price target for the stock is $271.35, marking a 26.81% upside from current levels.