Tesla stock extended its rally for a fourth straight session Wednesday as tensions between Musk and President Trump appeared to ease.

Tesla ( TSLA 5.66%) stock has tumbled 22% year to date amid a myriad of business and political headwinds, and Wall Street anticipates further declines. The average target price among 55 analysts is $289 per share, which implies 8% downside from the current share price of $316.

Baird downgraded shares of Tesla from "Buy" to "Neutral," saying the Musk-Trump spat has led to more uncertainty and the potential for brand damage.

Tesla investors want to think about AI. They might have to spend some time thinking about the car business again.

CNBC's 'Squawk on the Street' crew discuss Tesla as the electric carmaker's stock was hit with several downgrades since the Trump-Musk fallout.

Tesla faces an existential test this month as it aims to launch self-driving “robotaxis” in its home base of Austin, Texas, where public-safety officials are increasingly concerned about the state’s anti-regulation stance toward autonomous vehicles.