JPMorgan analyst Ryan Brinkman reiterates an Underweight rating on Tesla with a $195 price target after the Securities and Exchange Commission filed a complaint Thursday alleging that its CEO Elon Musk violated federal securities law by making a series of false and misleading statements. The stock in premarket trading is down 12%, or $37.82, to $269.70. The analyst sees a “number of negative implications” for Tesla shares stemming from the suit, the most significant of which relates to the SEC’s request that the court prohibit Musk from serving as an officer or director of any public company, including Tesla. Such a move which “could hasten the inevitable transition” of Tesla shares toward being valued based upon fundamentals alone, Brinkman tells investors in a research note. He reiterates his belief that the Tesla’s fundamentals “do not support a value close to the current trading price.” Further, beyond this “key man risk” concern, which he believes “is of vital importance,” Brinkman also see a number of other risks, including the potential for decreased confidence in the company on the part of investors, consumers, and suppliers. The analyst is concerned that decreased confidence in Tesla on the part of investors may impact the company’s ability to raise capital on amenable terms. He’s also concerned that decreased confidence in Tesla on the part of suppliers may adversely impact the company’s near-term liquidity and longer-term margin potential. Further, Brinkman is worried that decreased confidence in Tesla on the part of consumers may impact the company’s ability to collect additional customer deposits.