Tesla Shares Slipping on Baird Downgrade

Early Wednesday morning Baird downgraded Tesla

from Outperform to a Neutral rating, while maintaining its $187 price target. While the upshot of the report was bearish due to its nature as a downgrade, the color stated that Baird is still bullish in the long term on Tesla, but sees a slowdown of price appreciation in the near future. Analyst Ben Kallo attributes this slowdown to investors stepping back after the huge rally and waiting for the company's next move. Kallo also stated that he believes the innovation premium for the company's breakthrough products is now fully priced into the stock. Following the report, Tesla shares traded down 1.78 percent to $189.57 in premarket trading