Tesla shares fall after Morgan Stanley recommends dumping the stock. Here are the details

SpaceX founder Elon Musk looks on at a post-launch news conference after the SpaceX Falcon 9 rocket, carrying the Crew Dragon spacecraft, lifted off on an uncrewed test flight to the International Space Station from the Kennedy Space Center in Cape Canaveral, Florida, March 2, 2019.
Mike Blake | Reuters

Morgan Stanley lowered its rating on Tesla on Thursday and said it thinks investors will be presented with a better chance to buy the stock in the future at a lower price.

The firm downgraded the stock to underweight (equivalent of sell) from equal weight. At the same time, it raised its price target to $360 from $250 to account for the rally in the stock. The shares have doubled in the last six months and closed Wednesday at $518.50.

The shares fell nearly 3.67% in early trading Thursday following the Morgan Stanley call, the third downgrade since the start of the year, according to Tipranks.

There were three main reasons for Morgan Stanley's downgrade from respected analyst Adam Jonas:

More In Pro News and Analysis

CNBC ProHere are David Einhorn's top holdings that pushed Greenlight to best ever quarter
CNBC ProBillionaire investor Stanley Druckenmiller exits Amazon and scoops up smaller tech, health stocks
CNBC ProBed Bath & Beyond downgraded during massive meme surge Tuesday