The stock of Tesla, the electric car maker, fell in after-hours trading on Friday after a new analyst warned that the company’s stock is not likely to recover in the next year.
The analysts said the company will struggle “to rebound” in the coming years and that Tesla will have to raise prices.
Tesla, which has raised $100bn (£75bn) in funding to help it turn around its fortunes, also faces a tough year as it looks to expand into the automotive market, which is still struggling to break even.
Elon Musk, Tesla’s CEO, has repeatedly said that the stock would continue to rise over the next five years.
“The company is not only in a stronger position than it was five years ago, it’s going to continue to grow,” said Charles Grant, chief investment officer at J.P. Morgan.
“We think it’s a solid position, but it’s probably going to be a while before we see Tesla go up again.”
Tesla shares have been on a tear since the launch of the Model 3 electric car in April, raising more than $5bn in financing from investors including Goldman Sachs and Andreessen Horowitz.
Investors have been particularly enthusiastic about the Model S electric car, which the company says is the world’s most affordable electric car.
“They have had the opportunity to drive the market, and the Model X is a pretty great car, but they haven’t yet done it,” said Mr Grant.
“It’s the Model E that they’re really excited about.”
Tesla said it had more than 6,000 employees and has sold more than 17,000 vehicles in its first five years of operation.
It also reported its first quarterly profit for the year, after it raised $12bn in new funding.
Tesla is still one of the biggest publicly traded companies in the world.
The company reported revenue of $1.6bn for the first quarter of 2019, up 15 per cent from the same period a year earlier.
Tesla reported profit of $817m for the same quarter last year.