Morgan Stanley analyst Adam Jonas has suggested that Tesla must further reduce the cost of its cars in order to compete with fierce competition from Chinese rivals. In a report, he wrote, "If Tesla doesn't lower prices, other manufacturers (Chinese OEMs) will." He noted that Tesla's market share in China has been declining since reaching a peak in 2020, and that Chinese manufacturers will continue to compete with Tesla. Investors must "adapt" to Tesla sharing the "electric vehicle sandbox" over the next few years, he said. Jonas maintained an "overweight" rating on Tesla with a target price of $200, lower than Monday's closing price of $220.52.