The Tesla Model S is selling very well. But will it sell well enough to support Tesla's lofty valuation? Source: Tesla Motors.

Shares of Tesla Motors Inc. (NASDAQ:TSLA) dropped over 9% on Monday, after a top Wall Street analyst issued a report suggesting that the shares might be overvalued.

Morgan Stanley auto analyst Adam Jonas has been one of the loudest Tesla bulls on Wall Street, and he continued to refer to Tesla as the "the world's most important car company" in his latest report.

But despite that view, he said in his report this week that Tesla's share price might have risen a bit too high too quickly. Among the concerns he expressed in the report:

  • There are no signs -- yet -- that a mass-market move toward battery-electric vehicles is imminent, or even on the near-term horizon
  • Tesla may not be able to expand its service and support infrastructure in China adequately to support the number of sales some analysts are hoping to see
  • Jonas anticipates a large-scale move to crowd-sourced autonomous cars in about 15 years, and questions whether there's a place for Tesla in that world.

In this video, the Motley Fool Motor Money duo of John Rosevear and Rex Moore dig into Jonas' report and offer their take on his points, as well as thoughts on the big question: Is Tesla really overvalued at current prices?  

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.