Investors put more and more pressure on Tesla Inc. becoming more and more doubtful about CEO Elon Musk’s ability to turn a profit and keep the business growing.
Earlier this week Tesla cut $3,000 from the price of the Model S sedan and $2,000 from the Model X SUV.
Due to the negative news that the company has been distributing for the last few months, Morgan Stanley’s analyst Adam Jonas cut his worst-case price for $TSLA to a jaw-dropping $10 from $97.
Jonas explained that his updated worst bear case is a result of the company’s rising debt pile, insufficient near-term demand and escalating trade tensions between the U.S. and China that could lead to the latter targeting the electric car maker. His bear case assumes Tesla misses China sales forecasted for the company between 2020 and 2024 by half, costing it $16.4 billion in market value.