SINGAPORE (May 27): A Wall Street analyst who had a price target as high as US$379 on Tesla a little more than a year ago held a private call with investors on May 23 to elaborate on why he thinks the stock may now be headed for as low as US$10.

“Tesla was seen as a growth story,” Morgan Stanley analyst Adam Jonas said on the call, a recording of which was obtained by Bloomberg News. “Today, supply exceeds demand, they are burning cash, nobody cares about the Model Y, they raise capital and there’s no strategic buy-in. Today, Tesla is not really seen as a growth story. It’s seen more as a distressed credit and restructuring story.”

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