BofA analyst John Murphy downgraded Tesla to Underperform from Neutral with a price target of $485, down from $500. The shares closed Tuesday down 8%, or $59.64, to $686.72. The analyst cites valuation for the downgrade following the stock’s recent rally. Tesla faces several hurdles, including production challenges, a burnout pattern for new models, continued cash burn, and the prospect of new competition, Murphy tells investors in a research note. In addition, the analyst cut his global volume forecasts for autos, believing the recovery will be “tepid” U-shape as economies are reopened.