Tesla stock drops after being downgraded on valuation concerns (Video)

well another day another downgrade we're talking about Tesla the shares are dipping today after Morgan Stanley's Adam Jonas downgraded the stock too with the equivalent of a hold from buy he did increase the price target of 250 from 200 a share he says Tesla is still a must-own EV stock but high expectations in AI he said bring the stock to a fair value the stock taking a hit of 3.3 it was downgraded by Barclays yesterday on similar valuation reasons uh just got the note here and it's quite interesting here because he basically says that while he's still bullish on the company he doesn't think it is an AI play and he also says there is a little bit of confusion or a little bit of false combination of AI and yes driving he says they remain two very different technological disciplines while the market may want to Dream On the AI theme we'd prepare to wake up to the sound of a blaring car horn I know and and him seeing Tesla as an AI beneficiary and an auto company so it's a it's a AI adjacent if you will it seems like that's the Viewpoint uh from Adam over here uh and you know also interesting to know about his price Target um and where it stands today I mean look it's uh I mean in the pre-market sure it's down uh three percent as we noted but the price Target seeing it as 250 so you know um it's a little bit below where it is right now um but there's a bull case price Target as well which is much higher right and the bear case one that's right lower yes I mean you know it basically again what he's saying here is that it is based on hope he calls it the AI the AI based re-rating of the stock is a non-disprovable bull case in other words you can't disprove it because it's all just sort of speculation and hope at this point so as is typical for Tesla there is this element this overlay of what people want to imagine it's capable of and Tesla has proven time and time again that it is capable of some of those things that's why I guess it's also not disprovable because it does have a track record but we still don't know we can't predict the future with enough certainty he seems to be saying to price in this AI future right