(Bloomberg) -- One of Tesla Motor Inc.’s strongest supporters on Wall Street issued a cautious report on the maker of luxury electric cars today, sending its shares skidding 9.1 percent on Monday.
Adam Jonas, an analyst for Morgan Stanley who has an “overweight” rating on Tesla, wrote today that he agrees with CEO Elon Musk that “the share price was a bit ahead of itself.”
The shares fell $25.34 Monday to $253.86 in New York. They recovered some of the loss today, going up 2.7 percent to close at 260.74.
Jonas issued four “sobering factors to consider” about Tesla. He wrote that electric vehicles are “failing categorically on a global scale,” warned that Tesla’s growth may be limited in China, that battery-powered cars still require technological breakthroughs to become mainstream and that the dawn of driverless cars threaten Tesla’s reason for being.
“We are big believers in Tesla’s strategy and stand firmly by our claim that it is the world’s most important car company,” Jonas wrote. “But we do not expect the stock to appreciate so consistently and one-directionally from here.”
Tesla shares have gained 69 percent so far this year, compared with 7.3 percent for the Russell 1000 Index.