Dividend Stocks

Tesla (TSLA) Stock Slides After Second Downgrade This Week

Tesla (NASDAQ:TSLA) stock is on the move Thursday after the company got hit with its second downgrade this week.

This downgrade comes from Morgan Stanley analyst Adam Jonas and drops the stock from an “overweight” rating to an “equal weight” rating. This comes just a day after Barclays analyst Dan Levy also dropped TSLA stock from an “overweight” rating to an “equal weight” rating.

Despite the Morgan Stanley downgrade, Jonas increased the firm’s price target for TSLA stock from $200 per share to $250 per share. Likewise, Levy increased Barclays’ price prediction for TSLA from $220 per share to $260 per share alongside his downgrade.

To put all of this in perspective, the current analyst consensus rating for TSLA is “hold.” That’s based on 35 opinions covering the shares. Additionally, the consensus price prediction for TSLA shares is $205.91 per share.

Why Are Analysts Downgrading TSLA Stock?

Both analysts take issue with the recent rally Tesla has undergone alongside artificial intelligence (AI) stocks. While they note that investors have connected TSLA to these stocks due to its self-driving vehicles, they don’t believe the company is a mainstay in the AI sector.

Jonas explained the following in a note to clients obtained by Seeking Alpha:

“Autonomous driving and generative AI still remain, in our view, 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.”

TSLA stock is down 2.9% as of Thursday morning.

Investors on the lookout for more of the latest stock market news will want to keep reading!

There’s plenty of other stock market news that traders will want to keep up with on Thursday! A few examples include why shares of Rivian (NASDAQ:RIVN), Gulfport Energy (NYSE:GPOR) and AlloVir (NASDAQ:ALVR) stock are in the news today. We’ve got all of that news ready to go below!

More Thursday Stock Market News

On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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