Tesla investors urged to wake up as stock downgraded again.

Morgan Stanley analyst Adam Jonas downgraded Tesla stock to Equal Weight from Overweight but raised his price target to $250 from $200, citing somewhat unrealistic expectations on AI hopes that have brought the stock to what he sees as a fair valuation. Jonas believes Tesla is an “AI beneficiary AND an auto company,” but warns that a re-rating on this theme is in the realm of the non-disprovable bull case. Despite the rating downgrade, Jonas still sees Tesla as a “must own” in the auto space due to its supply chain prowess and relative margin strength.