Shares of EV auto maker Tesla Inc. (NASDAQ:TSLA) have been on a bumpy ride the past few trading sessions. Since hitting a high of $900 this past week, shares have dipped around 10% to the $810 level at the time of writing. Some investors may be thinking this dip is a buying opportunity, however it looks like there may be some headwinds materializing on the horizon for Tesla.

This past week, the car company announced a recall of over 12,000 model X units due to faulty moulding. The German motor vehicle authority (the KBA) made the announcement on Friday. This recall affected 2015 and 2016 models, meaning consumers who bought a Tesla in the past five years in North America will not be affected.

Quality concerns have been a problem for Tesla in the past, and Tesla will need to continue to ensure its cars are produced at high volumes, but also at the highest quality. I’ve opined for a long time that Tesla’s growth rate could present problems if quality is sacrificed at the alter of volume, as the company sets increasingly aggressive production targets to satisfy growth investors.

I think Tesla is a great brand, and has done amazing things in advancing the electric vehicle movement. However, with additional competition on the horizon for decades to come, this is a company that is valued far too highly for me to consider right now. If serious headwinds materialize, this is a company with significant downside potential, due to its nosebleed-level valuation.

Invest wisely, my friends.