Tesla becomes the weakest performer of the magnificent 7 stocks

Tesla stock downgrades from a couple of brokerages on Monday highlight Wall Street's growing fear about the EV maker's future after last week's spat between Musk and Trump.

Argus Research and Baird downgraded Tesla's stock to a 'hold' recommendation from 'buy' before Musk and Trump's fallout on Thursday.

The brokerages downgraded Tesla's stock due to concerns about the company's outlook following the breakup in Musk and Trump's bromance.

The outlook cut further solidifies Tesla's status as analysts' least favourite megacap stock.

Trump vs Musk: Tesla stock downgraded

Tesla's shares have fallen about 27 per cent in 2025. That decline so far this year makes the EV maker the weakest performer of the so-called magnificent seven stocks.

Tesla shares had rallied in the wake of Trump's re-election, which Musk vigorously supported. But they are down almost 40 per cent off their peak in December.

Much of the stock's recent decline came after the high-profile blowup between Musk and Trump last week.

The disagreements are perceived as a major drag on Tesla's share price, even as Musk later indicated he was willing to make amends.

Wall Street analysts called the Trump-Musk spat a 'disaster' for embattled Tesla.

Analysts at Argus Research said, "Looking ahead, we are concerned that the war of words between President Trump and Elon Musk, along with the expiration of EV credits, could further weaken demand for new Teslas."

That view was echoed by Baird, which cut the stock to 'neutral' from 'outperform.'

Baird said, "Musk's comments about Tesla's robotaxi program are a bit too optimistic, and we believe this excitement has been priced into shares."

Tesla's robotaxi service focuses on driverless vehicles and artificial intelligence, and scheduled to launch in Austin this week.

The EV maker has the worst analyst recommendation ratio among the market's biggest companies.

Fewer than half of the analysts surveyed by Bloomberg recommended buy the shares. Still, there are 30 'buy' ratings for the stock.

But there are also 18 'hold' ratings and 13 'sell' recommendations. Even within the positive bets, analysts don't seem to be expecting a price recovery anytime soon.