KEY POINTS
  • Tesla may have a "price to pay in terms of eroding scarcity value," Morgan Stanley analyst Adam Jonas said in a note to investors Friday.
  • Jonas is widely followed for his thoughts on Tesla and electric vehicles.
  • While there will be pain points, the macro view of Tesla's growth is largely positive in Jonas' view.
Car transporter carries Tesla Model 3 vehicles along the highway.

Tesla's increasing production rate and active resale market may be hurting the brand's appeal and diminish demand for its cars, Morgan Stanley said Friday, in a counterintuitive note to clients.

"Many auto companies make great efforts to maintain and remarket their used vehicles to increase accessibility of the used product to customers who otherwise cannot afford to buy new ... we note there may be a simultaneous price to pay in terms of eroding scarcity value," Morgan Stanley analyst Adam Jonas said in a note to investors.