Morgan Stanley Downgrades Tesla: Should You Revisit Your EV ETF Portfolio?

Morgan Stanley recently downgraded Tesla (TSLA) to Equal Weight from Overweight, with a new $425 price target, citing that the stock's valuation already prices in lofty expectations for AI, robotics, and Full Self-Driving amid slower electric vehicle (EV) adoption and competition. As expected, shares of the EV-maker dipped around 3% on Dec. 8, 2025 (as per a Yahoo Finance report) following the announcement. This highlights how vulnerable it can be to invest in a single stock. However, investors in EV-focuse ...