After maintaining a favorable stance for two and a half years, Morgan Stanley has, for the first time, downgraded Tesla's rating to 'Hold'. The firm believes that Tesla's current stock price already fully accounts for the potential of its robotics and artificial intelligence ventures, pushing its valuation to what it considers a 'fully priced' state. In his debut research report, newly appointed analyst Andrew Percoco highlighted that Tesla's share price is poised for volatility in the upcoming year, with a risk of underperforming market expectations. He noted that the upside from Tesla's non-automotive segments is already priced into the stock. Percoco has set a new price target for Tesla at $425, marking a 6.6% drop from the previous Friday's closing value. He also projects that, due to industry-wide challenges, Tesla's electric vehicle sales in North America will see a 12% decline next year.