Barclays downgrade causes Tesla stock to plummet.

Barclays analyst Dan Levy downgraded Tesla shares to Equal Weight from Overweight, claiming the recent rally ignored near-term questions about the stock’s fundamentals. Levy’s main thesis for the downgrade rests on three main points: the AI effect that may be overblown, Tesla’s recent Supercharger deals and uncertain benefits, and, most importantly, how multiple expansion is really the “entirety of the rally.” Tesla shares are down nearly 6% in midday trading on Wednesday, poised for the stock’s biggest loss in two months.