Morgan Stanley Downgrades Tesla Stock

The auto making company has seen a major fall on the stock, which is due to the downgrade it has received from equity firm Morgan Stanley.

Tesla Motors has been receiving mixed reviews about its Model X car, which was just released by the CEO of the company at a launch event in a very dramatic way. Elon Musk, the CEO, has expressed massive expectations for the sales to be made by the company, which all the analysts in the market do not seem to agree to. The predictions that have been made by Musk seem to be a little too over the bullish side for the ones who have been covering the stock of the giant in detail from the start. However, there sure are some analysts which have come out to be realistic enough to feel like the EV maker is on a trip that is going to take it to heights that even it does not believe it could achieve. As far as the predictions regarding the future of Tesla cars are concerned, the giant has given a guidance to its analysts according to which it could be doubling its current revenue generation to become even bigger than Fords Motors, which has been there in the auto industry for quite some time now. On the other hand, the smart car maker does not seem to be considered by the analysts in the same way that it looks at its own stock, which is why a report by the analysts at Morgan Stanley was seen to majorly downgrade the shares of the luxury car makers, following which the share price of the firm experienced a massive dip on the index. Analysts at Morgan Stanley have also come around to believe that the fact that Tesla business has been downgraded is mainly because of the extremely high price that has been given to the new Model X, which could be a little too over the pricey level, even for its elite customers. Keeping in mind the high price for the car, the predictions that were made by Musk in regard for obtaining the expected sales number are being seen by the giant in a very negative and unattainable way. In the last trade session, Tesla stock was seen to fall by around 1.91% on the index which surprised not only the investors but also the analysts who had not been expecting such a huge fall in the stock price, right after the release of the new model. This fall in the stock price is being considered as first time since the fall it experienced when the Chinese market saw a major dip a couple of weeks ago.