What happened Shares of Tesla (NASDAQ: TSLA) fell Tuesday, adding to Monday's decline. The stock slipped as much as 5.6%, and was down 4.2% as of 12:50 p.m. EST on Tuesday. While some of the stock's pullback likely has to do with a decline in the broader market amid growing coronavirus fears, it may also reflect an analyst's move to downgrade the stock from a buy rating to a hold rating. The Tesla Model 3. Image source: Tesla. So what Jefferies analyst Philippe Houchois called attention to Tesla stock's valuation on Tuesday, noting that shares don't seem particularly attractive at this level. But Houchois is optimistic about Tesla's business opportunity. He called the electric vehicle (EV) market opportunity a "positive-sum game" in which Tesla is well positioned. And although Houchois lowered his rating for the stock, he did notably boost his 12-month price target from $600 to $800. This increased target likely reflects the stock's huge run-up in recent months; even including the stock's sharp decline during the last several days, shares are up 278% over the last six months. Now what Tesla investors should expect volatility in the stock to continue. Given the stock's premium valuation and its huge run-up, big swings in the EV maker's stock will likely be commonplace. Find out why Tesla is one of the 10 best stocks to buy now Motley Fool co-founders Tom and David Gardner have spent more than a decade beating the market. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* Tom and David just revealed their ten top stock picks for investors to buy right now. Tesla is on the list -- but there are nine others you may be overlooking. Click here to get access to the full list! *Stock Advisor returns as of December 1, 2019 Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Tesla. The Motley Fool has a disclosure policy.Source