Tesla Downgrade Highlights Valuation Risks as Crypto Markets Watch for Tech Sector Spillover
Morgan Stanley's new lead Tesla analyst Andrew Percoco downgraded TSLA to Equal Weight with a $425 price target, citing overvaluation of AI-driven growth. The move follows Adam Jonas' departure to focus on AI research, signaling a strategic shift at the firm.
Auto segment valuation was cut to $55/share amid reduced delivery forecasts, while FSD and Optimus robotics programs maintain premium valuations. This recalibration of tech-heavy equities may pressure crypto assets tied to AI narratives like FET, AGIX, and Ocean Protocol.
The downgrade reflects growing institutional skepticism about stretched valuations - a warning sign for crypto projects trading at similar growth multiples. Market makers on Binance and Coinbase may adjust altcoin liquidity as traditional tech sentiment cools.