Investors have been sweating troubles at Tesla for some time.
And the stock took another hit Tuesday after investors got a look at a possible bottom, when Morgan Stanley warned clients Tesla stock could drop to just $10.
SOUNDBITE (ENGLISH) REUTERS BUSINESS CORRESPONDENT CONWAY G. GITTENS, SAYING:
I'm Conway Gittens in New York. That prediction is far from a certainty, as a matter of fact it is Morgan Stanley's worst-case scenario. Still, if that were to happen, it would mark a massive nosedive for shares of Tesla, currently trading at around $200. It's been a rough time for Tesla investors. The stock has been roughly cut in half since last August. Tesla's big problem: it is burning through borrowed cash in order to build its mass-market Model 3.
According to Morgan Stanley, that financial pressure -coupled with a tumbling stock price - could eventually force CEO Elon Musk into some kind of cash-generating partnership or even an out-right sale.
And that's not the only dark cloud on Tesla's horizon.
There are concerns about problems with Autopilot , the self-driving feature Musk has staked as the key to Tesla's future.
And worries about the possible risk of a slow-down in Chinese demand.
Tesla's brand loyalty is high on the charts and it is still hailed for making electric vehicles - sexy and sleek. But it's still not building models fast enough to generate the cash it needs.
Of the 31 research analysts covering Tesla, two-thirds have either a neutral or sell rating on the stock.
Shares of Tesla have fallen 10 of the past 11 sessions.