William Blair & Co. cut its rating on Tesla Inc. to Market Perform from Outperform, warning that a recently passed GOP spending measure, dubbed the “Big Beautiful Bill,” erodes key incentives that underpin the electric-vehicle maker’s profitability and demand outlook. The legislation eliminates the $7,500 federal tax credit for new EV purchases and scraps corporate average fuel-economy (CAFE) fines, changes the brokerage says could slice as much as $2 billion a year from Tesla’s regulatory-credit income and temper U.S. vehicle sales. Tesla shares fell about 7% in pre-market trading on 7 July after the downgrade but had recovered to $297.93, up 1.4%, by midday 8 July as investors weighed the longer-term impact of the policy shift.