Analysts at Evercore, an advisory firm, have made grim predictions about Tesla’s stock in the future. Tesla has been dealing with many issues that vary from market issues to legal ones. Its stock has been trading lower than the top achieved earlier in April at around $291 per share. Evercore believes there is still much way down to go for the stock.

A multitude of adverse factors facing the company

The company appears to be losing its market position as more rivals are entering the market. Its customers are receiving declining tax incentives from the government, and its production operations are out of date. As a result, Evercore thinks the stock will go down in value to $240 and its earnings will diminish as well. This is a change from a previous optimistic prediction the advisory firm had posted before.

The share is under selling pressure

Weak demand in the market for Tesla’s products, especially for its most recent model, has been one factor behind the change. Moreover, the ability of the company to produce on time has been put to question on many occasions. The numerous lawsuits against both Tesla and its CEO Elon Musk, not the least of which is filed by the SEC, are an additional pressure factor on the company and its shares.

Although the company reduced the price of its automobiles to stimulate demand, the efforts are not enough to offset the multitude of bearish factors against the manufacturer. Evercore believes raising more capital in terms of equity would help the company at this point.

Tesla (TSLA) Stock Price Today