Baird: Downgrades Tesla to Neutral, Target Price Set at $320

Investment bank Baird has downgraded Tesla (TSLA.O) from outperform to neutral, with a target price of $320. The firm noted that despite Tesla's weak quarterly performance, it has still risen by 24% (compared to the S&P 500's 13%), partly due to excitement over the upcoming launch of an affordable car and Robotaxi in June. We believe Musk is overly optimistic about the launch of Robotaxi, and much of the hype has already been priced in. His relationship with Trump also adds uncertainty. In the long term, Tesla remains a strong choice, but we are currently taking a wait-and-see approach.