As previously reported, Evercore ISI analyst Arndt Ellinghorst downgraded Tesla (TSLA) to Underperform from In-Line citing his more cautious view on demand for its vehicles, in particular, the recent "severe decline" in demand for the Model S and Model X.

Given the demand concerns, Ellinghorst cut his delivery forecasts for 2019, 2020 and 2021 and lowered his 2020 EPS estimates by 40%.

He also expresses concern that the company has been taking repeated "cost-cutting measures" designed to conserve cash when a "proper capital raise" would alleviate liquidity concerns, Ellinghorst tells investors.

He lowered his price target on Tesla shares to $240 from $330.