June 26 Reuters A blistering rally in Tesla Inc shares has powered the EV maker39;s market value toward trilliondollar levels, prompting some analysts to question its valuation and downgrade the stock.

Goldman Sachs on Monday cut Tesla to hold equivalent rating, joining Morgan Stanley and Barclays, which downgraded the stock last week. The brokerages, however, raised their price targets to reflect the momentum in Tesla shares, which have soared 71 since late April and more than doubled this year.

The EV maker39;s shares were last down 1.2 in morning trading on Monday. Tesla39;s market capitalization of 813.29 billion far outstrips that of Japan39;s Toyota, which is the next biggest global car company by market value.

The brokerages have attributed the rally, which has cost short sellers 12.68 billion this year, partly to the company benefiting from the buzz around Artificial Intelligence.

Tesla shares have also benefited from a string of positive news in the past two months including deals struck by rival automakers Ford and General Motors for gaining access to its charging network, a move that could make its chargers the industry standard.

The stock also got a boost from China39;s announcement of a 520 billion yuan 72.3 billion package of tax breaks for EVs and other green cars last week.

While the market is now giving the stock more credit for its longerterm opportunities, we are also cognizant of the difficult pricing environment for new vehicles that we think…