Adam Jonas just trimmed his price target on Tesla stock

Shares of Tesla Inc (NASDAQ: TSLA) are in the red on Wednesday after a long-time bull trimmed his price target on the EV stock.

Tesla faces near-term headwinds

Adam Jonas lowered his price objective on $TSLA this morning to $320 amidst rising competition from hybrid vehicles.

Its recent price cuts are not helping either in terms of accelerating demand, the Morgan Stanley senior analyst told clients in a research note today.

The news arrives only a day after an arson attack on the Nasdaq-listed firm’s plant in Berlin. Tesla stock is now down close to 30% versus the start of this year.

Can Tesla stock be valued as AI beneficiary?

Jonas sees a slowdown in demand particularly in the infrastructure-rich California and the oversupplied Chinese market as near-term headwinds for Tesla Inc.

The Morgan Stanley analyst agreed that $TSLA is an energy, robotics, and artificial intelligence company as well but does not expect it to be “valued as an AI beneficiary as long as core auto earnings are being revised down.”

Nonetheless, he remains bullish on Tesla stock for the long term as evidenced in his new price target that still suggests about a 16% upside from here.

Last month, Ford CEO Jim Farley urged the Wall Street to “stop looking at Tesla as future of the automotive industry” (read more).