TSLA is trading at 4.2% down now at $435.94 after Morgan Stanley downgraded the stock to Equal-Weight from Overweight, citing stretched valuation. The downgrade was driven by new lead analyst Andrew Percoco, who stated that much of the upside potential related to Tesla’s AI and robotaxi initiatives is already factored into the current stock price. * Despite the change in rating, Morgan Stanley raised its price target for TSLA to $425. * The firm highlighted concerns regarding the near-term risk-reward profile and anticipates a choppy trading environment ahead.