Cautious Optimism: Ben Kallo’s Hold Rating on Tesla Amid Market Expectations and Emerging Risks

Robert W. Baird analyst Ben Kallo downgraded the rating on Tesla (TSLA – Research Report) to a Hold today, setting a price target of $320.00.

Ben Kallo has given his Hold rating due to a combination of factors influencing Tesla’s current market position. Despite Tesla’s strong performance, which has outpaced the S&P 500, Kallo expresses concerns about the sustainability of this growth. The anticipation surrounding the launch of a more affordable vehicle and a robotaxi service has significantly boosted Tesla’s stock, but Kallo believes that the market has already priced in these expectations, making further gains less certain.
Additionally, Kallo highlights several risks that contribute to his cautious stance. The relationship between Elon Musk and President Trump introduces uncertainty, potentially affecting Tesla’s brand image. Furthermore, Kallo points out the ambitious expectations for the robotaxi service, which may not be as profitable as anticipated due to increasing competition. These factors, combined with adjustments to delivery estimates and the removal of the EV tax credit, lead Kallo to adopt a more neutral outlook on Tesla’s stock in the short term, while still recognizing its long-term potential.

In another report released on June 6, Barclays also maintained a Hold rating on the stock with a $275.00 price target.