Tesla stock was downgraded from “Outperform” to “Market Perform” by William Blair analyst Jed Dorsheimer, according to Benzinga. Dorsheimer cited the impact of the Trump-supported “Big Beautiful Bill” as a major concern. The bill removes the $7,500 EV tax credit and eliminates corporate average fuel economy fines, both of which threaten Tesla’s margins. Dorsheimer warned that Tesla could lose $2.8 billion in regulatory credit revenue, approximately 16% of its 2024 gross profit, by 2027 due to a decline in credit buyers. He also said the shift may cause a surge in third-quarter units, followed by weakness in the fourth quarter, while Musk’s return to politics could further distract from business priorities. Shares rose 1.3% on Tuesday but remain down 20.4% for the year.
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00:02Tesla's stock was downgraded from outperform to market reform by William Blair analyst Jed Dorsheimer, according to Benzinga.
00:09Dorsheimer cited the impact that Trump supported Big Beautiful Bill as a major concern.
00:13The bill removes the $7,500 EV tax credit and eliminates corporate average fuel economy fines, both of which threaten Tesla's margins.
00:20Dorsheimer warned that Tesla could lose $2.8 billion in regulatory credit revenue, 60% of its 2024 gross profit, by 2027 due to vanishing credit fires.
00:31He also said the shift may cause a third-quarter unit surge, followed by a fourth-quarter weakness, while Musk's return to politics could further distract from business priorities.
00:40Shares rose 1.3% on Tuesday, but remained down 20.4% in 2025.
