Morgan Stanley analyst Adam Jonas lowered the firm’s price target on Tesla to $250 from $330 and keeps an Overweight rating on the shares. He attributes $43 of the reduction as related to core Tesla auto, where he has factored in greater levels of price discounting, $12 of the reduction to mobility and $25 from network services, where he has increased his probability discount, Jonas explains. While he sees Tesla’s 45% selloff in December being driven by EV supply being greater than EV demand and believes 2023 is “shaping up to be a ‘reset’ year for the EV market,” Jonas also thinks Tesla may be in position to extend its lead versus the EV competition and calls out valuation, cash flow, innovation and cost leadership as supporting his Overweight rating on the shares.