Tesla Inc. faced downgrades from Argus Research and Baird, indicating deepening issues related to its stock performance and future outlook after a public feud between CEO Elon Musk and former President Donald Trump. Shares have declined significantly, around 27% in 2025, making it the least favored among analysts. Concerns grow about potential impacts on demand and brand reputation linked to Musk's political activities, particularly in light of the expiration of EV credits, as investors worry about non-fundamental influences affecting the stock.
The recent incident between Musk and Trump exemplifies key-person risk associated with Musk’s political activities, adding uncertainty to TSLA's outlook and potentially harming brand reputation.
Analysts expressed concern over the ongoing feud between Musk and Trump, predicting it might weaken demand for new Teslas, further impacting the already declining stock.
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