The stock fell 7.5% on Monday as one analyst cut the price target.

Things haven’t been looking good for Tesla recently. On Monday morning, an analyst lowered the company’s price target after delivering a searing report.

Wedbush analyst Dan Ives expressed serious concerns about the future trajectory of Tesla. Ives referred to CEO Elon Musk’s recent endeavors as “sci-fi” projects and distractions from the real issue at hand.

Tesla’s stock fell 7.5% to its lowest levels since 2016. And Ives cut the company’s price target from $275 per share to $230 per share.

Can Tesla overcome mounting investor concerns?

Ives is one of the more bullish analysts on Wall Street but he isn’t alone in his evaluation of Tesla. Other Wall Street analysts have dramatically changed their outlook on the company in recent months as well.

Many of the concerns surrounding Tesla are actually concerns about Musk himself. Last week, Musk sent an email to employees requesting that everyone tighten their spending considerably.

And on Friday, it was determined that the Autopilot was engaged before a deadly Florida crash involving a Model 3. That makes this the third fatal crash where the Autopilot has engaged before impact.

This raises serious questions about the safety of these vehicles. It also raises questions about the company’s future in self-driving technology.   

Final thoughts

And a recurring concern for many investors has been the production of and the demand for the Model 3. The company forecast it would produce between 360,000 and 400,000 units by the end of the year.

Ives said this would be a “herculean task,” adding that 340,000 to 355,000 seemed the more likely target at this point.

Tesla did recently raise $2.7 billion in capital, a move that was welcomed by many investors. Ives acknowledge that this was a step in the right direction for Tesla but that it may not be enough to get the company on the right path.

With the current management in place at Tesla, the company may continue to face these same problems going forward.