Tesla Inc (NASDAQ:TSLA) shares fell more than 6% after Baird analysts lowered their price target for the electric vehicle maker to $370 from $440 citing several near-term challenges.
The analysts highlighted potential risks in Tesla’s first quarter vehicle deliveries report amid production delays with the Model Y refresh. The consensus for Q1 deliveries is 437,500 vehicles.
CEO Elon Musk’s increasing political engagement, including his role leading the Trump administration’s new cost-cutting body the Department of Government Efficiency (DOGE), was cited as another concern.
“Production downtime associated with the Model Y refresh complicates the supply-side of the equation while at the same time, Musk's involvement with the Trump administration adds uncertainty to the demand-side,” Baird wrote in a note to clients.
They maintained their ‘Outperform’ rating on Tesla, which traded down 6.4% at about $261 on Thursday afternoon.