Tesla CEO Elon Musk speaks during the unveiling of the new Tesla Model Y in Hawthorne, California on March 14, 2019.

In the midst of a fourth-quarter surge that launched Tesla's stock past CEO Elon Musk's $420 per share takeout value, Morgan Stanley reiterated its $250 price target on the company.

Tesla is currently trading at an outsized value for an autos manufacturer, Morgan Stanley analyst Adam Jonas said in a note published Monday. The analyst said that investors will eventually cease to view Tesla as a tech company and send the stock plummeting to levels comparable to others in the autos industry.

Morgan Stanley has an equal-weight rating on Tesla's stock. Jonas' $250 price target would slash Tesla's market cap from $75 billion as of Monday's market close to about $45 billion, marking a 40% cut.

"We are not bullish on Tesla longer term, especially as, over time, we believe Tesla could be perceived by the market more and more like a traditional auto OEM," Jonas wrote. "We are prepared for a potential surge in sentiment through 1H20 but question the sustainability."

Tesla last traded around the $250 mark in October this year, just before it reported better-than-expected Q3 earnings and a surprise profit, which sent shares up more than 20% after hours. The stock has since been on a tear that has boosted its value more than 60% in the fourth quarter.