Morgan Stanley's widely followed Adam Jonas slashed his price target on Tesla as he lowered an estimate for second quarter deliveries. "We mark to market our 2Q forecasts for lower volume (latest data, China) with most of the shortfall made up for in 2H volume and higher pricing," Jonas said in a Wednesday afternoon note. "Target falls to $1,200 (vs. $1,300) almost entirely due to WACC increasing to 9% from 8.5% previously. We'd buy weakness on a potentially weak 2Q print." His updated share price target is still nearly 70% above where Tesla traded on Wednesday, around $709. Jonas kept his overweight rating on Tesla. Shares of the EV maker have tumbled more than 30% this year as rising rates hit growth stocks particularly hard. The analyst cut his second-quarter delivery estimate to 270,000 units from 316,000 units previously. "With TSLA 2Q sales estimated to be around 100k units through May (EVVolumes), we believe TSLA will flex its manufacturing prowess, aided by accelerated ramp of Austin and Berlin, and deliver ~170-175k units in June, slightly below the estimated ~180k units delivered in March '22," Jonas said.