Baird downgraded Tesla (TSLA) to Neutral from Outperform with an unchanged price target of $320. The stock’s strong performance following a “fundamentally poor quarter” has been partly a product of anticipation for the June launch of both a more affordable vehicle and robotaxi service, the analyst tells investors in a research note. The firm believes Tesla CEO Elon Musk’s comments regarding the robotaxi ramp rate “are a bit too optimistic,” and that this excitement has been priced into shares. Baird also notes that Musk’s ties to President Trump “have added considerable uncertainty.” The firm sees Tesla as a core holding in the long term, but is stepping to the sidelines for now.
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