/ December 9, 2025 Tesla Inc. finds itself navigating a complex investment landscape. Despite reporting robust production figures from a key market, the electric vehicle manufacturer received a notable downgrade from Wall Street analysts at Morgan Stanley. The central concern revolves around whether the company’s current share price already reflects its ambitious future in artificial intelligence and robotics, potentially leaving little room for near-term gains. Analyst Adjusts Rating While Raising Price Target In a significant move, Morgan Stanley analyst Andrew Percoco shifted his recommendation on Tesla’s equity from “Overweight” to “Equal-weight.” This adjustment signals a more neutral stance, suggesting the stock is fairly valued at present levels. Interestingly, this downgrade was accompanied by an increase in the firm’s price target, which was lifted from $410 to $425 per share. The juxtaposition of these actions conveys a nuanced message: while Tesla possesses long-term potential, its current trading price—hovering around $440 at the time of the report—appears to have limited immediate upside. Following the announcement, Tesla’s stock declined by approximately 3.4%. The core issue identified by the analysts is valuation. Morgan Stanley’s research indicates that investor enthusiasm for Tesla’s ventures into AI, robotaxis, and humanoid robotics is already fully priced into the stock. Compounding this view is a revised forecast for 2026 vehicle deliveries, which was reduced by 10.5%. This leads to a pivotal question for investors: can the promise of future technology projects sufficiently justify the present market capitalization, especially if the foundational automobile business shows signs of strain?