Tesla shares have been on a roller-coaster ride lately, and one Wall Street bull has decided to step off, saying there are many reasons to be cautious right now. The electric-vehicle maker was cut to neutral from outperform by Baird Equity Research analysts Ben Kallo and Davis Sunderland on Monday.

Investors fear that the dispute between Elon Musk and President Donald Trump "will stop their friendship and change the regulatory environment for Tesla on the autonomous front over the coming years under the Trump administration,

After soaring in 2023 and 2024, shares of Tesla (NASDAQ:TSLA) was battered throughout Q1 2025. But since the start of Q2, the largest U.S. EV-maker has seen its shares bounce back nicely. After falling by 41.