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The Bursting of the Tesla Stock Bubble

  • Shares fell after analysts cited cash flow, demand issues
  • Musk remains upbeat, saying company will meet delivery targets
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Tesla Faces 'Everest-Like' Uphill Battle, Wedbush's Ives Says
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For Elon Musk and Tesla Inc., the blows from Wall Street came one after another this week -- a relentless barrage that left the stock so beat up that some now wonder if it can ever regain its status as the ultimate 21st century disrupter.

Morgan Stanley threw the biggest blow, declaring that in a worst-case scenario, Tesla’s shares could sink to a shocking $10. A Wedbush analyst said the carmaker is facing a “code red situation” and cast doubt on whether Tesla can sell enough of its electric cars to make a profit. And Citigroup and Robert W. Baird & Co. analysts, among others, slashed their target prices, citing concerns about cash flow and consumer demand.