A key analyst Monday downgraded Tesla stock, saying the electric vehicle maker faces an increasingly crowded market for its cars, solar products and technology.
Adam Jonas, analyst at Morgan Stanley and Tesla bull, said he expected increased pressure from the likes of Google, Amazon and Apple in the auto technology and self-driving vehicle race, according to MarketWatch.
"We expect much larger and more well-capitalized competitors to unveil strategies that directly address sustainable transport and mobility," Morgan Stanley analysts wrote.
Tesla stock dipped about 2.5 percent in trading Monday, although it still remains over $300 per share and near record levels. The Palo Alto-based company disappointed analysts with first-quarter losses coming in higher than expected.
About 30 companies have applied for self-driving permits in California, including Apple, Google's Waymo, and nearly every major automaker.
Tesla's driver-assist package, Autopilot, was overhauled late last year. The company says it now installs a suite of sensors and hardware in every new vehicle that will allow the cars to eventually become fully autonomous. Upgrades to Autopilot have been rolling out through wireless upgrades over the last several months.
But Tesla also faces growing entrants into the electric vehicle market. GM is selling the battery-driven Bolt, a four-door sedan starting at $37,500 with an advertised electric range of 238 miles.
Volkswagen unveiled plans last month for four, lower-priced all-electric vehicles to compete head-to-head with Tesla. VW's battery-powered lineup will include mid-size and crossover SUVs, a sedan and hatchback. Audi also expects to offer an upscale electric SUV in 2019.
Tesla CEO Elon Musk said the company is on track to start manufacturing the Model 3 in the next several months at its Fremont factory. The lower cost EV, with a sticker price of $35,000, marks the company's push to make its electric vehicles mainstream.
