Tesla (TSLA) stock dropped nearly 6% on Thursday as yet another investing firm cut its price target on the stock as its year-to-date losses reached 35%. 

In a note published Thursday morning, analysts at Baird slashed their 12-month outlook on Tesla shares to $370 from $440, citing concerns that Wall Street's expectations for Tesla's first quarter deliveries are too high. 

The firm cited concerns over production disruptions related to Tesla’s new Model Y as well as the potential negative impact of Elon Musk’s government foray on the EV maker’s demand.

“Intra-quarter sales data from TSLA's key regions lead us to believe there is risk to the consensus Q1 delivery estimate of 437.5K,” Baird's team wrote. “Production downtime associated with the Model Y refresh complicates the supply-side of the equation while at the same time, Musk's involvement with the Trump administration adds uncertainty to the demand-side.”

The move comes just days after Bank of America lowered its price target on Tesla shares to $380 from $490, citing “sentiment on the brand potentially souring” and weak sales in Europe.

February marked the electric vehicle maker stock's second-worst month on record. 

Tesla in January reported earnings that showed annual EV deliveries declined for the first time in 2024. Data out this week from China showed Tesla’s shipments from the country have plummeted, adding to negative sentiment.

The stock's recent drop has also unwound gains following the election of US President Donald Trump last November.

Trump's election was seen as a boon for Tesla's push into AI and the autonomous driving space, as investors expect the company will face a looser regulatory environment, but Musk's foray into politics has drawn criticism at home and abroad.

REUTERS / Reuters

Laura Bratton is a reporter for Yahoo Finance. Follow her on Bluesky @laurabratton.bsky.social. Email her at laura.bratton@yahooinc.com.

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