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Tesla Stock Gets Analyst Downgrade As ‘Double-Edged Sword' Of Musk-Trump Relationship Rears Head
TSLATesla(TSLA) Forbes· Forbes·2025-06-09 15:40

Core Viewpoint - Tesla has received a downgrade from analysts due to concerns over CEO Elon Musk's recent political controversies and skepticism regarding the upcoming robotaxi rollout [1][2][3]. Analyst Downgrade - Baird analysts, led by Ben Kallo, downgraded Tesla's stock rating from buy to neutral and reduced the price target by 14% from 370to370 to 320, which is still above the current stock price of 297[1].PoliticalControversy−TherecentclashbetweenMuskandPresidentTrumphasraisedconcernsaboutpotentialbranddamageforTesla,asMusk′spoliticalactivitiesmaycreateuncertainty[2][3].RobotaxiLaunchSkepticism−AnalystsexpresseddoubtsaboutTesla′sabilitytomeetexpectationsforitsrobotaxilaunch,forecastingonly6,000driverlesscabsontheroadbythesecondhalfofnextyear,significantlylowerthanMusk′spredictionof"hundredsofthousands"[4].FinancialPerformance−Tesla′sstockhasincreasedby17297 [1]. Political Controversy - The recent clash between Musk and President Trump has raised concerns about potential brand damage for Tesla, as Musk's political activities may create uncertainty [2][3]. Robotaxi Launch Skepticism - Analysts expressed doubts about Tesla's ability to meet expectations for its robotaxi launch, forecasting only 6,000 driverless cabs on the road by the second half of next year, significantly lower than Musk's prediction of "hundreds of thousands" [4]. Financial Performance - Tesla's stock has increased by 17% since Election Day, outperforming the S&P 500's 5% return, despite weak underlying financials, including the lowest revenue since Q2 2022 and the weakest net profit since Q4 2020 [6]. Delivery Forecast - Goldman Sachs analysts predict that Tesla's vehicle deliveries will decline at a record pace of 18% compared to the same period last year, highlighting the impact of Musk's political donations on sales in key markets [6]. Contrasting Views - Wedbush analyst Dan Ives maintains a bullish stance with a 500 price target, suggesting that the Trump administration may still support Tesla's regulatory needs despite Musk's recent controversies [7]. Musk's Wealth Impact - Following the clash with Trump, Musk's net worth has decreased by over 20billion,althoughheremainstheworld′srichestpersonwithanetworthof20 billion, although he remains the world's richest person with a net worth of 394 billion [9].