Elon woke up today to two massive middle fingers from the analyst community. Why? Because Monday morning brought a double-dose of Wall Street shade, with not one but two analyst downgrades… mainly because watching Elon Musk pick fights with Donald Trump on the world stage wasn’t enough uncertainty for the “Magnificent Seven’s” red-headed stepchild.
(Source: Giphy)
In short, Tesla shares are already down 27% this year, making Tesla the weakest link in the high-flying tech clique. And the Trump slap fight didn’t help Elon’s case. Which is why Argus Research saw the drama and said, “Nope, we’re out”... downgrading Tesla from buy to hold. Their actual note: “[The] war of words between President Trump and Elon Musk, along with expiration of EV credits, could further weaken demand for new Teslas.” Translation: political pissing matches and shrinking incentives are about as good for demand as a recall notice written in ALL CAPS.
Additionally, Baird followed suit, slicing its rating to neutral from outperform, warning that “key-person risk associated with Musk’s political activities” is now a legitimate investment thesis. Wild times when “what will Elon tweet next” is a bigger variable than Chinese EV competition.
(Source: Bloomberg)
Speaking of China, the “bright spot” in Q1 is now just a dim tail light in the rearview. According to the China Passenger Car Association, Tesla’s May deliveries collapsed to 38,588, a 30% year-over-year freefall. Year-to-date, sales in China are down 8%. So much for “once-in-a-generation growth market” when BYD is kneecapping your growth and posting its bigly wins on WeChat. For this reason, Wall Street's patience is officially shot.
For instance, fewer than half the analysts tracked by Bloomberg still rate TSLA a buy. For scale, UnitedHealth could randomly partner with Nvidia to drop a GPU that mines Bitcoin and still get more love. The average price target? Dead even with where the stock sits now. Nobody’s betting on a comeback till Musk proves he can launch more than just Twitter beefs from the driver’s seat
(Source: IBD)
Meanwhile, Elon’s favorite distraction, robotaxis, has received the squiented side-eye from Baird, who basically called the whole thing “priced in” and accused Musk of being “a bit too optimistic.” Translation: “We’ve seen this movie before and the ending sucks” LOL. Which means while the pilot is allegedly launching in Austin this week, don’t expect Wall Street to lose their minds unless one of those robotaxis actually delivers the earnings report.
In the end, this is core “the CEO is the problem” energy. The entire thesis is being held hostage by non-fundamental bullshit: presidential feuds, credit expirations, and Musk’s infinite ability to menace his own brand. If you’re an investor, congratulations… you now own the most chaotic blue chip stock in the market, and not in the fun, meme-stonk way.
(Source: Giphy)
Meaning, unless Musk and Trump hug it out on live TV, or more than one robotaxi is actually produced and WORKS on a highway… don’t expect a quick turnaround. Of course, crazier things have happened… but for now, keep your head on the swivel and place your bets accordingly. Until next time, friends…
At the time of publishing this article, Stocks.News holds position in Tesla as mentioned in the article.
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