• Morgan Stanley sets a price target of $425 for Tesla Inc. (NASDAQ:TSLA), indicating a potential downside from its current trading price.
• Michael Burry expresses skepticism towards AI stock valuations, hinting at the possibility of Tesla being overvalued amidst the AI stock surge.
• Tesla's stock shows volatility with a current trading price of $455, reflecting mixed market sentiment towards its valuation and future prospects.

Tesla Inc. (NASDAQ:TSLA), a leading electric vehicle manufacturer and a significant player in the AI sector, has recently been the subject of varied analyst opinions and market speculation. On December 7, 2025, Andrew Percoco from Morgan Stanley set a price target of $425 for Tesla. At that time, Tesla's stock was trading at $455, indicating a price difference of approximately -6.59% from the target. This suggests that Morgan Stanley sees potential downside in Tesla's stock price.

Michael Burry, known for predicting the 2008 subprime mortgage crisis, has recently expressed concerns over the valuations of AI stocks, including Tesla. Burry has taken short positions in Nvidia and Palantir, and his skepticism extends to Tesla amidst the AI stock surge. He believes that AI stocks may be overvalued, drawing parallels to historical market trends. This scrutiny suggests that Burry might consider Tesla for his next major short position.

Tesla's stock is currently trading at $455, with a slight increase of 0.47, translating to a percentage change of 0.10%. Today, the stock has fluctuated between a low of $451.66 and a high of $458.87. Over the past year, Tesla's stock has reached a high of $488.54 and a low of $214.25. This volatility reflects the market's mixed sentiment towards Tesla's valuation and future prospects.

Tesla's market capitalization stands at approximately $1.47 trillion, highlighting its significant presence in the market. The trading volume for Tesla today is 56.43 million shares, indicating active investor interest. Despite the concerns raised by analysts like Percoco and Burry, Tesla remains a key player in the AI and electric vehicle sectors, attracting attention from both investors and market analysts.