Elon Musk's Issues Drive Tesla Stock Downgrade and Price Target Drops

Tesla's stock was downgraded by Daiwa Capital Markets analyst Jairam Nathan, who cited concerns about governance issues surrounding CEO Elon Musk that could exacerbate the already "tough" electric vehicle demand environment. The analyst downgraded the stock to neutral from outperform and lowered the price target by 20%, expressing worries about potential restrictions on Tesla's long-term focus and technology advantage due to governance issues. The stock has tumbled 26.2% year to date, making it the worst performer in the S&P 500 index, and the recent knocks on Tesla's governance could make the path for long-term investors more volatile.