Tesla stock traded higher early Wednesday as shares continue to recover from last week's sell-off with the feud between Elon Musk and President Trump cooling down.

Tesla earned a new analyst downgrade in the wake of last week’s stunning showdown between the formerly close allies in Tesla CEO Elon Musk and President Donald Trump, as the stock continues to face pressure from Musk’s activities outside of his executive duties.

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 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.

Last week, a social media post from Elon Musk caused many people to stop what they were doing and look down at their phones. Even for the Tesla (TSLA) CEO, known for his controversial and bold opinions,

Bloomberg journalists discuss today's biggest winners and losers in the stock market. Listen for analysis on the companies making news on Wall Street.

Options traders piled into bearish bets on Tesla Inc. stock on Thursday at the fastest pace on record as a feud between President Trump and Tesla CEO Elon Musk escalated, causing the electric-vehicle maker to tally its biggest drop in market capitalization on record.