Morgan Stanley Downgrades Tesla Shares Amid Valuation Concerns
Morgan Stanley downgraded Tesla shares from Overweight to Equal-weight after a change in analyst coverage. The new analyst, Andrew Prokoca, cited valuation concerns, noting that the high market expectations for Tesla's AI ventures are already priced into the stock, resulting in a more cautious short-term view despite raising the price target. While the auto business valuation was adjusted slightly lower, the firm incorporated Tesla's robotics division into its valuation model, attributing around $60 in value to this segment.