June 10- Robert W. Baird analyst Ben Kallo downgraded Tesla (TSLA, Financial) to a "Hold" rating from "Buy". Kallo maintained his price target of $320 per share. This marks the analyst's first downgrade for the electric vehicle maker in three years.
Kallo cited concerns over "heightened expectations" surrounding Tesla's upcoming robotaxi launch event. He also highlighted potential "key-man risk" related to CEO Elon Musk's activities and associations. The analyst noted TSLA stock has surged over 20% since first-quarter results, likely reflecting existing optimism about the robotaxi and a more affordable vehicle.
The analyst expressed skepticism about the projected speed of the robotaxi service rollout, describing it as potentially "a bit too optimistic." Tesla was recently listed by Austin, Texas, authorities as being in the "testing" phase for autonomous vehicles. Competitor Waymo is listed in the "deployment" phase in the same city.
Kallo's decision also factored in increased competition, potential changes to vehicle delivery timelines, and the gradual reduction of electric vehicle tax credits. Despite the downgrade, Tesla shares rose about 3% in pre-market trading on Tuesday. This movement coincided with the apparent easing of tensions between Musk and former President Donald Trump, who recently confirmed continued use of Tesla products.
