Editor's note: An earlier version of this story contained an incorrect share price. The stock earlier today fell below the $200 level.
Tesla Inc. sustained another blow by Wall Street analysts as Morgan Stanley slashed its worse-case scenario for the share price to just $10 over concern the company has saturated the electric-car market.
“Demand is at the heart of the problem,” analysts led by Adam Jonas said in a note. “Tesla has grown too big relative to near-term demand, putting great strain on the fundamentals.”
Jonas lowered his “bear case” for Tesla shares from a previous estimate of $97 to take into account the risk that the company misses its current sales forecast for China by about half. He maintained his $230 price target.
Tesla fell below $200 in early trading Tuesday in New York, but recovered most of the loss by midday. The shares fell 0.1 percent to close the day at $205.08. A sell-off sparked by slowing deliveries and a chaotic shift in retailing strategy early this year has accelerated this month, with several analysts sounding alarms about petering demand.