Baird downgraded Tesla stock from 'Buy' to 'Neutral' following Elon Musk's public feud with President Donald Trump last week.
The analysts at Baird cited concerns of 'brand damage' and increased uncertainty due to Musk's political activities.
The downgrade was also influenced by rising competition in the EV space, tariff disruptions in the supply chain, and high investor expectations for Tesla's robotaxi rollout.
Tesla's shares have surged by nearly 70% in the last year, but experienced a 26% decline in 2025 amid the ongoing challenges.