Tesla (TSLA, Financial) just got a reality check from one of its long-time bulls.
Robert W. Baird analyst Ben Kallo downgraded the stock from “Buy” to “Hold” — his first such move in three years. While the firm is still sticking to its $320 price target, that's a slight drop from where Tesla's currently trading. In other words, Baird doesn't see much short-term upside right now.
Why the shift? Kallo pointed to growing hype around Tesla's upcoming robotaxi event. He thinks expectations may be running a bit too hot, especially considering the company was only just added to Austin's autonomous vehicle testing registry. By comparison, Alphabet's (GOOG, Financial) Waymo is already in the deployment phase.
There's also what Kallo calls “key-man risk.” That's a reference to Elon Musk, whose influence at Tesla is massive. His recent public support for Donald Trump and involvement in political discourse is creating more uncertainty, not less — at least from an investor perspective.
Interestingly, Tesla shares were up about 3% in premarket trading. That may reflect cooling tensions between Musk and Trump, with reports that the president plans to keep his Tesla and Starlink setup if he returns to the White House.
Kallo still sees Tesla as a long-term player, but for now, he's urging caution. Other factors like tougher EV competition, shifting delivery estimates, and possible changes to tax incentives are also in the mix.
