TSLA Falls Sharply After Trump vs. Musk Drama: Is the Robotaxi Rollout at Risk?

TSLA Falls Sharply as Trump Targets Musk Days Before Robotaxi Reveals

The shares of Tesla (TSLA) were lowered early on Monday morning. After a public argument between President Donald Trump and CEO Elon Musk, this resulted in a significant sell-off. Investor excitement for the robot taxi service’s anticipated launch this week was tempered by this.

Baird Analysts Stay Cautious on Tesla Despite Strong Q1 Performance

With a price objective of 320, Baird analysts cut TSLA from outperform to neutral on Monday. That is around an 8% increase above the current trading level. According to analysts, Tesla’s stock has done well since its first-quarter reports, rising by over 20%, mostly as a result of investors’ excitement over the restricted robotaxi service’s debut.

However, the company claimed that Tesla stock has already been factored into this excitement and that Musk’s forecasts for the robotaxi ramp-up rate are a little overly high. Additionally, the analysts said that Musk’s connections to Trump have created a great deal of concern. According to the research report, Baird is standing on the sidelines for the time being but still views Tesla as a fundamental holding in the long run.

Tesla Sinks Before Robotaxi Launch: Volatility Warning Issued by Analysts

Last week, Tesla’s stock dropped 14.7% to 295.58. The shares dropped below important moving averages, such as the 50-day line, the 200-day moving average, and the 21-day exponential moving average, after an aggressive Thursday entrance. Tesla’s drop last week can also be seen as a warning that the impending introduction of the robotaxi could be a dangerous event that causes big market swings.

The stock’s sell-off reflects a number of other factors: an unjustified run-up following its Q1 earnings release, ongoing market share losses in China and Europe, and a realization that next week’s Robotaxi launch in Austin could disappoint.

Similar to other major Tesla events in the past, shares have appreciated sharply leading up to the event, raising the probability of a ‘sell the news’ reaction. We remain at Hold, expecting more volatility in the near term. Buckle up!

CFRA analyst Garrett Nelson

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