Tesla Inc. lost a buy rating from one of its longtime bulls, with a Morgan Stanley analyst boosting his projection for how much cash the carmaker will burn through as more prosperous rivals encroach on its business.

Adam Jonas, Morgan Stanley’s top auto analyst, has been one of the biggest advocates for Tesla stock, envisioning offerings of a ride-for-hire service that could double the value of the company. He now sees operating losses continuing through next year and estimates the company will consume $3.1 billion of cash this year, compared with an earlier estimate of $2.3 billion.

“We expect much larger and more well capitalized competitors to unveil strategies that directly address sustainable transport and mobility,” Jonas wrote in a note to clients. The expansion by Alphabet Inc.’s Waymo of its self-driving Chrysler Pacifica minivan fleet and Apple Inc.’s plans to test of autonomous cars in California amount to “an assault by large tech firms” of the market, he said.

China could also prove largely inaccessible to Tesla as a provider on-demand automated mobility services, Jonas said, which would limit the long-term prospects for the company in the world’s largest auto market.

Tesla dropped as much as 3.8 percent after jumping 52 percent this year through Friday. The shares fell 3.5 percent to $313.39 as of 10:05 a.m. in New York trading, the biggest decline in the 29-member Bloomberg World Auto Manufacturers Index.