Morgan Stanley auto analyst Adam Jonas cut his price target for many stocks in his sector, including Tesla . Jonas said in a note to clients that a slowing economy dampens the outlook for autos, leading to estimate cuts and lower price targets. "We make material cuts to our forecasts across our coverage to reflect slowing growth and credit headwinds. Top line holds up better vs. past recessions (due to relatively low unit starting point and historically low inventory) while margins take a hit," Jonas wrote. Jonas lowered his price target for Tesla to $1,150 per share from $1,200. The new target is still more than 60% above where the stock closed on Wednesday. Shares of Tesla are down nearly 33% for the year. — CNBC's Michael Bloom contributed to this report.