Tesla Inc. (TSLA) shares jumped Wednesday, closing up over 3% at $312.20 and reflecting a whopping 46.5% gain year-to-date (YTD) compared to the S&P 500’s 17.5% increase over the same period. As the electric car pioneer faces production setbacks with its first mass-market vehicle, the Model 3 sedan, one team of analysts on the Street expects demand to soften as consumers look elsewhere to the growing number of Tesla competitors coming out with their own electric models. (See also: GM Could Beat Tesla in Autonomous Driving: Barclays.)

On Tuesday, analysts at Cascend Securities downgraded shares of the Palo Alto, Calif.-based automaker from hold to sell along with a $250 price target, indicating a 20% downside over the upcoming 12-month period.

Electric Alternatives

As consumers who have not already preordered the Model 3 realize that they can’t get new vehicles until 2019, they are likely to seek out alternatives. Cascend Chief Investment Strategist Eric Ross noted that Ford Motor Co. (F) alone has 13 electric vehicles set to debut over the next five years. At the same time, “the company is burning through cash and will likely need to raise capital in the first half of 2018 (and perhaps even the first quarter 2018) … And there won’t be enough Model 3 production to suggest break-even is around the corner,” wrote Ross.

On the bright side, the Cascend analyst highlighted Tesla as a “great, exciting brand to which consumers are drawn.” At the helm of the electric car market, Tesla is also positioned to gain from new government regulation. In China, the U.K. France and Norway, the government has already put a sunset date on the sale of vehicles powered by fossil fuels.

“If you want risk, we surmise bitcoin will reach $20,000 long before TSLA reaches $700. And you’ll be able to hedge your investment on the CME as of Sunday,” wrote Ross, speaking to the exchange’s plans to begin offering bitcoin futures. (See also: Tesla Sales to Beat $60B Within Decade: Nomura.)

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