Morgan Stanley analyst Adam Jonas has cut his worst-case price for Tesla Inc. (TSLA) to a jaw-dropping $10 from $97.

Jonas cited the company's rising debt pile, insufficient near-term demand and escalating trade tensions between the U.S. and China that could lead to the latter targeting the electric car maker. His bear case assumes Tesla misses China sales forecasted for the company between 2020 and 2024 by half, costing it $16.4 billion in market value.

"Our revised case assumes Tesla misses our current Chinese volume forecast by roughly half, to account for the highly volatile trade situation in the region, particularly around areas of technology, which we believe run a high and increasing risk of government/regulatory attention," Jonas said in the note reported on by TheStreet. He has a price target of $230 per share and "best-case" evaluation of $391 per share for Tesla. The brokerage maintained its "equal-weight" rating.

reported that financial services firm Baird also cuts its price target on Tesla stock on Tuesday to $340 from $400 but maintained its "outperform" rating.

Tesla shares closed at a multi-year low of $205.36 on Monday after Wedbush analysts warned of a "code red situation" at Tesla and cut their price target on the stock. Tesla shares are down 38% year-to-date and sank below $200 in pre-market trading on Tuesday.