A Citigroup analyst has joined the pack of bears coming for Tesla, whose stock has sunk to two-and-a-half-year lows amid simmering worries over demand.

Itay Michaeli warned of an increased chance that Tesla will enter a “full bear” scenario in which the stock could be worth a mere $36. The balance between risk and reward “still appears negatively skewed despite the recent capital raise and stock pullback”, he said.

Mr Michaeli also lowered his base-case price target to $191 from $238 while maintaining a sell rating on the stock.

“The recent capital raise was a positive step but won’t necessarily get the balance sheet out of the woods if Tesla cannot achieve FCF targets. So the recent reported internal memo [on cost cutting], which seemingly called into question prior guidance, didn’t help the risk/reward calculus,” he wrote in a note to clients.