Shares of Tesla Inc. /zigman2/quotes/203558040/composite TSLA -1.21% dropped 5.4% in premarket trading Wednesday, after the leading electric vehicle maker's much-anticipated Battery Day appeared to disappoint investors. Baird analyst Ben Kallo raised his price target to $360 from $332, but his new target is 15% below Tuesday's closing price of $424.23. Kallo reiterated his neutral rating, but said he believes the risk-versus-reward scenario for investors is skewed negatively. He said while Tesla is accomplishing "impressive" things, current valuation already reflects significant disruption potential. "With the Battery Day in the rearview, we think there is a lack of upcoming catalysts and are cautious about demand given the recessionary environment," Kallo wrote in a note to clients. "We are not downgrading to an underperform given our long-term constructive view of [Tesla], but we do think there will be an opportunity to buy shares lower." The stock has rocketed 407.1% year to date through Tuesday, while the S&P 500 /zigman2/quotes/210599714/realtime SPX +0.34% has edged up 2.6%.