Tesla shares fall, Baird analyst sees lack of catalysts with Battery Day in the back

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Shares of Tesla Inc. TSLA,
-5,59%
fell 5.4% in pre-market trading on Wednesday, after the electric vehicle maker’s much-anticipated Battery Day appeared to disappoint investors. Baird analyst Ben Kallo raised his price target to $ 360 from $ 332, but his new target is 15% below Tuesday’s closing price of $ 424.23. Kallo reiterated his neutral rating, but said he believes the risk / reward scenario for investors is biased negatively. He said that while Tesla is doing “impressive” things, the current valuation already reflects significant disruption potential. “With Battery Day in the rear view, we believe there is a lack of catalysts ahead and are cautious of demand given the recessionary environment,” Kallo wrote in a note to clients. “We are not returning to underperformance given our constructive long-term vision [Tesla], but we believe there will be an opportunity to buy stocks on the downside. “The stock is up 407.1% year-to-date through Tuesday, while the S&P 500 SPX,
+ 1,05%
edged up 2.6%.

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