NEW YORK (TheStreet) -- Shares of Tesla Motors Inc (TSLA) are tanking 7.92% to $257.08 today after the electric automaker received a negative note from analysts at Morgan Stanley (MS) this morning and had its $320 price target removed.
The firm gave a cautious view, but maintained its "overweight" rating, and said the company's shares have run up a bit too aggressively in recent weeks.
Morgan Stanley said Tesla enjoyed a solid run in the past month and a half, but it's possible that the stock does not deserve such a high valuation due to the execution risk involved with its upcoming battery factory, and its aim to sell half a million vehicles annually by 2020.
Tesla Motors CEO Elon Musk echoed a similar stance earlier this month when he said that he believes shares are "kind of high" at the moment.
Separately, TheStreet Ratings team rates TESLA MOTORS INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate TESLA MOTORS INC (TSLA) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, poor profit margins and generally higher debt management risk."