Tesla Slips After Morgan Stanley Downgrade On Limited Upside

Reuters18:09

Tesla TSLA.O shares slip over 1% to $449.15 premarket.

Morgan Stanley analyst Andrew Percoco in note dated Sunday assumes coverage of the stock with "equal-weight" down from "overweight"; MS last downgraded Tesla in 2023.

With shares trading at 30-times estimated 2030 EBITDA, Morgan Stanley prefers to wait for a better entry point.

Brokerage sees non-auto catalyst path as broadly priced in.

MS raises PT to $425 from $410, representing a downside of nearly 7% from stock's last close.

Morgan Stanley's 2026 auto volume forecast is now 13% below consensus, reflecting a more cautious EV industry outlook.

24 of 55 brokerages rate the stock "buy" or higher, 20 "hold" and 11 "sell" or lower; their median PT is $413 - data compiled by LSEG.

As of last close, TSLA up 12.7% YTD.

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