well investors are unplugging from Tesla with shares sinking lower today off just over three percent EV maker facing two downgrades in just two days this week one from Morgan Stanley the analyst there Adam Jonas and the other from Barclays so where does a company really stand Yahoo finance as pross super median joining us now Pros we know Tesla obviously a massive favorite here among investors since the start of the Year this huge run up but it downgrade particularly from Jonas that's pretty big yeah I mean he's a pretty a pretty long time Bull on Tesla and Dan Levy a day before also not a not a bearish analyst on Tesla both downgrading but basically saying that the stock is not tied to fundamentals right now you know not really much news other than some charging deals here and there that are that are good but not only you know needle movers for the stock so basically they're talking about how these Tesla got caught up in the AI run up with a lot of AI stocks like Nvidia but basically it's for for Levy it's a long dated opportunity for Jonas he's saying generated Ai and AI for driving are two different things it's not the same thing they're not the same sort of companies like Nvidia and others that are rolling up at that he says we should kind of detach this from reality wake up from the AI dream is what he's saying but he says both analysts say the stock is still in long-term own in the space like it's a it is a cater leader in EV so you know just you might want to own it but not so much right here in fact Jonas says don't rewrite the stock here based on these AI stuff you know he raised the high price Target because he says he sees some upside but not enough to keep buying here at these levels that's what I was going to say because the one thing I noticed with his note was that it seemed kind of balanced and playing both sides of the coin if you will with regard to Tesla um and certainly you know seeing the pullback today we're seeing that knock-on effect of both of those downgrades but with regard to it being the front runner in the EV space uh with both of the analysts did we notice that they see Tesla continuing to just hold its position they both said that in the near term that estimates need to come down for Q2 they both they're too high right now they they say that for the near term there's going to be some sort of a little bit of a dip there but long term based on stuff like software Battery Technology the ability to actually Outsource uh software and Battery Technology to other companies uh Jonas noting is that a big opportunity for them so there's long-term play it's it's still good but short term there might be some a little bit of hiccups here as sort of the in the analyst Community might be too bullish on their near-term numbers and lots of questions just about the pricing strategy that's been laid out here from Tesla really the price cuts and then raises that we've seen since this are the area we also want to bring in Rochelle acufo who's joining us from down in DC for the remainder of the hour hey Michelle I wanted to ask you because I mean when we look at the deal with GM and Ford when it came to Tesla as well I mean do you think that this these downgrades you think they're fairly Justified at least in the near term I think what's happening is that they need to downgrade the stock because if you're if you're a fund manager and you have a an index it's not a mile of Miles about this if you own a portfolio of stocks Tesla keeps going up up up in terms of price you kind of got to take a little bit off the table and sort of rebalance your portfolio from like a a big invest institutional ownership point of view I think that's what's going on there's it's a downgrade based on the fact that we need to lighten up ownership of the stock because it's getting too high for if you were to manage this sort of fund but for normal investors more about a watch out here yeah you might see a bit more Pops in the stock going into Q2 you're going to see the delivery numbers come out at the end of the month so we'll see that but maybe it's more of a cautionary downgrade right now not so much that they actually hate the stock right now fair enough that's important context there fire subramanian always good to have you thanks so much
