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: