Sources: 1
Baird downgraded Tesla shares from
Outperform to Neutral on Monday, keeping the price target steady at
$320. The firm expressed skepticism about CEO Elon Musk's optimistic projections for the robotaxi ramp rate, suggesting that the market has already priced in this enthusiasm.
Musk has been aggressively repositioning Tesla from a traditional automaker to a leader in artificial intelligence and robotics, focusing on self-driving robotaxis and humanoid robots named
Optimus. This strategic pivot aims to redefine Tesla's future growth avenues beyond electric vehicles.
However, challenges have emerged, including the recent departure of Milan Kovac, Tesla's lead executive for the Optimus humanoid robot program, who left on personal grounds last week. Despite this, Musk remains confident, stating the company expects to have
thousands of Optimus robots operating in its factories by year-end.
Baird's cautious stance highlights the tension between Musk's ambitious vision and the practical hurdles Tesla faces in scaling its robotics initiatives. Investors are advised to temper expectations as the company navigates this complex transition.
"Musk’s comments regarding the robotaxi ramp rate are a bit too optimistic," Baird noted, signaling potential volatility ahead for Tesla shares.
This downgrade reflects broader market skepticism about Tesla's ability to deliver on its AI and robotics promises in the near term, despite the company's innovative ambitions.
Sources: 1
Baird downgraded Tesla shares to Neutral from Outperform, maintaining a $320 price target, citing CEO Elon Musk's overly optimistic robotaxi ramp-up expectations. Musk aims to transform Tesla into an AI and robotics firm, despite leadership changes in the Optimus humanoid robot program.
