Tesla falls as analyst says carmaker faces ‘code red situation’

Tesla Inc. shares plunged below $200 for the first time in more than two years on concerns the carmaker faces a “Kilimanjaro-like uphill climb” to hit profitability goals in the second half of the year.

In a note Sunday, Wedbush analyst Dan Ives described the electric-car maker’s predicament as a “code red situation” and cut his price target on the stock to $230 from $275. Ives slashed his target from $365 just last month.

Ives, who was once among the most bullish analysts covering Tesla, said in his note he has “major concerns around the trajectory of Tesla’s growth prospects and underlying demand on Model 3 in the U.S. over the coming quarters.”