Tesla hit with stock downgrades after fallout between Musk and Trump

The downgrades mark the latest hurdle for Tesla, shares of which are down about 27% in 2025, making it the weakest performer of the so-called Magnificent Seven stocks

Elon Musk subsequently suggested he was open to making amends with Donald Trump, but the tensions are seen as a significant headwind overhanging the Tesla shares.

Tesla was hit with a pair of downgrades on Monday, underscoring mounting concerns on Wall St about the electric vehicle maker’s outlook following last week’s clash between chief executive Elon Musk and US president Donald Trump.

Both Argus Research and Baird cut the stock to the equivalent of hold ratings, cementing Tesla’s reputation as the least-loved megacap stock among analysts. Shares fell 1.6% in premarket trading.