Analyst predicts more trouble for Tesla amid stock drop

May 23, 2019 - 10:00 am

Shares of Tesla opened lower Thursday, a day after an influential analyst raised questions about demand for its electric vehicles and told investors that Tesla could become a restructuring story.

Stock in the Palo Alto, California, company fell 3% after the opening bell to $186.97, its lowest level since February of 2016.

The drop comes after Morgan Stanley analyst Adam Jonas told investors on a private call that demand for Tesla's cars was lower than predicted. He says if it continues into next year then Tesla will become a restructuring story. A recording of the call was obtained by The Associated Press.

Jonas also says that Tesla has 49,000 employees and is the size of a company that sells a million vehicles per year. But last year it sold about 245,000.

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