Tesla (TSLA) Rating Downgraded by Baird due to Optimism Concerns

Jun 09, 2025

Investment bank Baird has downgraded Tesla (TSLA, Financial) from "Outperform" to "Neutral" with a price target of $320. Despite a weak quarterly performance, Tesla's stock has risen 24%, compared to the S&P 500's 13% gain. This increase is partly fueled by excitement over the upcoming affordable car launch and Robotaxi services. However, Baird believes that the anticipation around Robotaxi may be overly optimistic and much of the hype has already been priced into the stock. Additionally, CEO Elon Musk's connections with former President Donald Trump add a layer of uncertainty to the company's prospects. While Tesla remains a strong long-term option, the current stance is cautious.

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