Tesla price target lowered to $220, named ‘Top Pick’ at Morgan Stanley

Morgan Stanley analyst Adam Jonas lowered the firm’s price target on Tesla (TSLA) to $220 from $250 and keeps an Overweight rating on the shares, which the firm is making its Top Pick in the space, replacing Freyr Battery (FREY). Electric vehicles, or EVs, are passing from acute under-supply to potential over-supply and Tesla’s recent price cuts "are just the latest sign the EV market may be entering the ‘shake-out’ phase," the firm tells investors. Morgan Stanley argues that shorter delivery times, price cuts, and falling used values "mark a new ‘reset’ chapter for EVs," which prompts them to recommend reducing exposure across the EV portfolio. As the leader in global EVs, Tesla’s aggressive posture on price "applies significant fundamental pressure on its peers," said the firm, which questions whether competitors can keep up.