Tesla Motors stock dropped Monday after Morgan Stanley suggested that its shares had risen for the wrong reasons.

Shares in the electric car maker fell more than 9 percent by Monday afternoon, after Morgan Stanley researchers posited that they "do not expect the stock to appreciate so consistently and one-directionally from here."

One of the major concerns that the analysts noted is the failure of other electric vehicles across the developed world, which could lead to the industry to lobby for a "substantial revision" of air quality regulations "to slow down the pace of milestones they have little hope of achieving (besides Tesla)."

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