Core Viewpoint - Tesla's stock has experienced significant volatility, prompting some Wall Street analysts to adopt a more cautious stance, with recent downgrades in ratings reflecting concerns over the company's future performance and market conditions [2][3]. Group 1: Analyst Ratings and Market Sentiment - Baird analysts downgraded Tesla's stock rating from "outperform" to "neutral," while Argus Research lowered its rating from "buy" to "hold" [2]. - Among 55 Wall Street analysts covering Tesla, 27 maintain a bullish outlook, 17 are neutral, and 11 are bearish [2]. - Tesla's stock price has dropped 26% year-to-date, closing at $295 last Friday, with a further 2% decline in pre-market trading on Monday [2]. Group 2: Concerns Over Future Growth - Baird analysts expect only 6,000 autonomous taxis to be deployed, significantly lower than CEO Elon Musk's optimistic projections of tens of thousands [3]. - Analysts express skepticism about the profitability and market conditions for Tesla's autonomous taxi service, suggesting that current investor expectations may be overly optimistic [3]. - Argus's Selesky raised concerns about slowing demand for electric vehicles in the U.S. and noted that competitors like Ford and GM have made significant advancements in EV manufacturing [3]. Group 3: Political and Market Challenges - Tesla faces challenges in Europe due to Musk's political connections, leading to weakened sales in that region, while competition in China is intensifying [4]. - Baird analysts have lowered delivery expectations for 2026, citing potential cancellations of EV tax credits if Trump's tax and fiscal bill passes [4]. - Despite short-term challenges, Baird analysts remain optimistic about Tesla's long-term prospects, viewing the company's investments in autonomous taxis and robotics as holding "extraordinary opportunities" [4].