China Renaissance analyst Carson Ng downgraded Tesla (TSLA) to Hold from Buy with an unchanged price target of $346.

The shares closed Monday up $3.30 to $336.34.

The analyst cites valuation for the downgrade with the shares up 49% since September. Further, he expects the special design of the new Cybertruck to draw "polarized responses" from both consumers and investors.

While "strong preorders" of Cybertruck show Tesla's potential to expand its product portfolio, the recent share price appreciation has at least partly factored in the positives associated with upcoming Model Y launches and Shanghai production, Ng tells investors in a research note.