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Tesla Stock Price: Full Valuation?
8 Dec, 2025
Summary
- Morgan Stanley downgraded Tesla, citing full valuation.
- Tesla's stock trades at 210 times projected earnings.
- The EV maker's valuation reflects its robotics aspirations.
Morgan Stanley has lowered its rating on Tesla Inc. to a hold, a move not seen since June 2023. The firm believes the electric vehicle maker's stock price has reached a "full valuation," implying that the market has already priced in Elon Musk's future plans for robotics and artificial intelligence.
Currently, Tesla shares are trading at approximately 210 times their projected earnings over the next twelve months. This high multiple positions Tesla as the second priciest company within the S&P 500 index, surpassed only by Warner Brothers Discovery Inc. at 220 times.
The significant valuation suggests that investors are betting heavily on Tesla's expansion beyond electric vehicles into AI and robotics. However, Morgan Stanley's downgrade indicates a potential ceiling for further stock appreciation based on these futuristic ambitions alone.
