[ad_1]
An overly optimistic outlook on Tesla’s robotaxi rollout and a feud between CEO Elon Musk and President Donald Trump will keep the company’s stock in check, according to Baird. The firm downgraded in the electric vehicle company to neutral from buy. It maintained its $320 price target, which calls for about 8% upside from Friday’s close. Musk told CNBC’s David Faber in May that Tesla plans to have robotaxis in Austin by the end of this month . “We believe Musk’s comments regarding the robotaxi ramp rate are a bit too optimistic, and we believe this excitement has been priced into shares,” analyst Ben Kallo said. He noted that robotaxi expectations are high for the company and that competition is ramping up. “We also note that Musk’s ties to President Trump have added considerable uncertainty,” Kallo said. TSLA YTD mountain Tesla stock in 2025. President Donald Trump and Musk are in the midst of a public spat that started following the Tesla chief’s exit as a “special government employee.” Musk took to X to blast Trump , asserting that the president could not have won the 2024 election without him. He even alleged Trump was in Justice Department files regarding an investigation of Jeffrey Epstein . Musk also criticized Trump’s spending bill, calling it a “disgusting abomination.” Trump responded by threatening to cancel Musk’s government contracts. “The recent incident between Musk and President Trump exemplifies key-person risk associated with Musk’s political activities, in our view. While we have no indication of how the relationship may change or what either will do, we see the situation as adding uncertainty to TSLA’s outlook,” Kallo said. “We see TSLA as a core holding long-term, but are stepping to the sidelines for now,” the analyst added. Tesla shares fell more than 2% in the premarket following the downgrade. Year to date, the stock is down 27%.
[ad_2]
Source link
