Morgan Stanley Cuts Tesla to Underweight Amid China Risks
- Brief break above $1,000 doesn’t reflect trade row, price cuts
- Downgrade follows Goldman Sachs cutting Tesla stock to hold
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Morgan Stanley cut Tesla Inc. to underweight from equal-weight, saying the rally that saw the stock break above $1,000 this week doesn’t properly reflect emerging risks.
Analyst Adam Jonas cited price cuts across Tesla’s model range in China and the U.S. that suggest auto demand coming out of the coronavirus pandemic isn’t as strong as before. An even greater threat to the Palo Alto, California-based company’s valuation, he said, is a simmering trade row between Washington and Beijing.