Tesla shares have largely shrugged off a slide in profits this year as chief executive Musk has emphasized AI efforts such as self-driving cars and humanoid robots. Photo by Noah Berger/AP Photo/Postmedia files

Elon Musk is eager to transform Tesla Inc. into a robotics and artificial intelligence company, but the electric-vehicle maker’s stock price already reflects those businesses and is at a “ full valuation ,” according to Morgan Stanley , which lowered its rating on the company to the equivalent of a hold, its first cut since June 2023.

Tesla shares trade at about 210 times projected earnings over the next 12 months, making it the second most expensive company in S&P 500 Index, trailing just Warner Brothers Discovery Inc. at 220 times and well ahead of third place Pal

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