Tesla Model 3 is on the hot seat once again on the hot seat, but this time its different, intriguing and life-threatening. The latest Tesla reports suggest that the company would be late in the production of their Model 3.

Adam Jonas, a well-known Morgan Stanley analyst assigned to cover Tesla, has been known in the financial industry for his favorable coverage of the Tesla company. Described as a Tesla Cheerleader by the New York Times, Jonas always placed a higher than average price target on the company's stock.

But recently, Jonas has been a lot more cautious with his coverage of the electric vehicle market, and today he is making a tough call, this time is about Tesla. The Morgan Stanley analyst now has an 'Equal-weight' rating on the stock with the most dreaded prediction for Tesla investors. Jonas' latest forecast for today is that the Model 3 will be late by over a year and that the new car will not arrive until the very end of 2018.

This also means that If you make a reservation for one of Tesla's upcoming $35,000 mass-market electric vehicles, widely known as the Model 3, you may expect almost two years and maybe longer to get your hand on that vehicle.

In a note sent to his clients, Jonas has made significant changes, slightly reducing his price target on Tesla from $245 to $242 following the company's third-quarter financial results and the still ongoing process of SolarCity acquisition.

Jonas is not only forecasting the Model 3 being late to production by over a year, but he is also predicting the market volumes to be significantly lower to what is the company is actually forecasting in the market today.

Tesla CEO Elon Musk has been claiming before around 400,000 Model 3 units produced for 2018 alone, compared to Jonas' 60,000 for 2019. This could spell trouble for over 400,000 reservation holders of Tesla Model 3.

Tesla recently Tesla recently announced that their flagship mass-market vehicle will enter production in the mid-2017 with volume production toward the end of that year. However, due to some technical reasons, the company might miss their target deadline.

The demand for Model 3 has been huge, with nearly 400,000 people paying for a $1,000 refundable deposit to get a reserve. Some customers even camped out overnight in front of Tesla stores to get a secure spot in the queue.

But because the company is making its cars in smaller volumes only, Tesla needs to move out and find a big place build out its production capacity. They need to get a mass production of cars so they can fulfill the huge demands.

Recently, it acquired German-based Grohmann Engineering to aid in the development of its automated manufacturing systems and boost its mass production. The company is aiming for 500,000 units annually starting in 2018 right after the Tesla Model 3 made available.

The Tesla Model 3 represents Tesla's first big step toward more affordable pricing and middle market, as opposed to its previous model, which include the Model S and Model X vehicles. Model 3 is also the first major step in Tesla's strategy to become a major player in the electric vehicle market. The company believes that its current pricing strategy for Model 3 would make it more attractive to new customers, who could not afford the previous Tesla models.

Tags Tesla, Tesla Model 3, Elon Musk, Tesla Motors