Tesla Motors Inc (NASDAQ:TSLA) stock had an awful Monday when its shares fell 9%, marking the biggest loss since September 2014. In recent weeks, several analysts have issued reports on the electric car maker, giving a depressing outlook, and Monday was no different.

Tesla Motors Inc Stock At Risk, Saw Its Worst Day On Monday

Tesla may lower production guidance

Tesla, which is scheduled to release its quarterly earnings report on Wednesday, has seen a decline of 38% since the beginning of this year. In a note on Monday, Stifel analysts gave investors more reasons to worry. Though analysts are bullish on the EV firm in the long term, they warn that the company might not be able to do all that is needed to stave off short-term bears.

“At the end of the day, we think Tesla shares may be at risk simply because management remains long-term focused,” the analysts noted.

Tesla needs to scale up production to remain competitive in the car market, but how quickly it will be able to do that remains uncertain. Stifel analysts predict that the electric car maker will lower its car production guidance for 2016 on Wednesday, and this would lead to a further sell-off in Tesla shares.

Model 3 the most important car for Tesla

Tesla, which is in the process of building a massive gigafactory, has been touting plans to launch a more affordable vehicle called the Model 3. This vehicle might be the key the automaker needs to unlock mass market sales and turn profitable. However, the timeline for the Model 3 remains uncertain for now.

Tesla fans are expecting to see the Model 3 at the March event, but reports coming out of Europe suggest we may only get to see the first pictures of the new EV and nothing more. The company is expected to begin production of the Model 3 next year, giving a full year to Tesla to establish its new Model X SUV in the U.S. and other markets. According to rumors, the Model 3 will retail in the U.S. at a starting price of $35,000.

Stifel warns that with only two models, the EV firm “cannot afford major defects, recalls, or further interruptions (bringing previously delivered vehicles in for service).”

On Monday, Tesla shares closed down by almost 9% at $147.99. Year to date, the stock is down by over 38%, while in the last year, it is down by almost 32%,