Well, well, well. After two years of being Tesla’s biggest cheerleader on Wall Street, Morgan Stanley just pulled the classic “downgrade” move. You know, that thing where your bank analyst friend suddenly gets “realistic” about your favorite stock right when everyone else is having FOMO.
Here’s what went down: Morgan Stanley’s Andrew Percoco (great name for a finance guy, honestly) moved Tesla from “buy” to “hold” – which in Wall Street speak translates to “maybe pump the brakes on this one, chief.” The stock promptly threw a 4% tantrum because apparently even trillion-dollar companies have feelings.
Now before you start panic-selling your TSLA shares, Percoco actually raised his price target to $425. But here’s the kicker – that’s still about 3% below where the stock was trading. It’s like your friend saying “you’re great, but maybe aim a little lower.” Ouch.
The reasoning? Tesla’s still doing cool stuff with robots and self-driving cars (because of course they are), but Percoco thinks we should all chill out and wait for a better entry point. Translation: the stock is expensive, and electric car sales aren’t exactly setting the world on fire right now.
Morgan Stanley basically said “hey, we’re cutting our Tesla delivery expectations by 10.5% for 2026 and 18.5% through 2040.” That’s finance-speak for “Americans aren’t buying EVs as fast as we thought they would, and China’s getting really good at making electric cars too.”
The timing is pretty wild when you think about it. Tesla’s had a rollercoaster year – down 45% at one point, now up 12% overall. That happened right around when Elon Musk came back from his government efficiency side quest to focus on, you know, actually running the car company.
But here’s where it gets interesting. Morgan Stanley isn’t being a total buzzkill. They’re still bullish on Tesla’s robot taxi dreams and their humanoid robot Optimus (yes, that’s really what they called it). The problem? Everyone else is working on the same stuff now, especially those overachievers in China.
There’s also this whole thing about Tesla’s approach to self-driving cars. While everyone else is using fancy LiDAR sensors, Tesla’s going full minimalist with just cameras. It’s like showing up to a knife fight with a really good pair of glasses. Bold? Absolutely. Risky? Also absolutely.
Percoco made it clear he’s not betting against Tesla – he just thinks the next 12 months are going to be “choppy.” Which is analyst code for “buckle up, it’s going to be a bumpy ride.”
The bottom line? Tesla’s still Tesla – innovative, ambitious, and probably working on something that’ll make us all feel like we’re living in the future. But even the most exciting companies sometimes need a reality check on their stock price. Morgan Stanley just delivered theirs with a side of “we still think you’re cool, though.”
So if you’re holding Tesla stock, don’t panic. If you’re thinking about buying, maybe wait for that dip. And if you’re Elon Musk reading this – hey, at least they didn’t downgrade you to “sell.”