Tesla’s (TSLA) stock has dropped sharply in recent months. While sales are falling across key markets and even optimistic analysts are turning cautious, one group remains confident – Elon Musk’s loyal fans. Indeed, these retail investors have been steadily buying shares of the EV maker by pouring in $8 billion over a 13-day stretch. It is worth noting that this is the biggest inflow during any buying streak since at least 2015, according to JPMorgan data. Their support is especially impressive because the stock has fallen 17% during that period.
This surge in retail interest comes as Tesla faces growing challenges. What was once seen as a major benefit, Musk’s role in the Trump administration has actually caused a lot of backlash. Protests and vandalism targeting Tesla showrooms and charging stations have increased, and the company is losing ground in Europe, China, and Australia. In addition, Wall Street analysts are slashing sales and profit forecasts due to rising competition, an aging lineup, and a decline in consumer interest linked to the brand’s political associations.
Still, some analysts and investors remain hopeful. Morgan Stanley’s Adam Jonas cut his Tesla price target but maintained a bullish rating, saying that the short-term issues don’t change the long-term story that is centered around AI and robotics. Furthermore, Wedbush’s Dan Ives praised Musk for trying to rally employees and investors during a live stream and stated that Tesla’s future value will be mostly driven by autonomous technology. Interestingly, for many individual investors, their belief in Musk and his vision matters more than the firm’s near-term financials.
Is Tesla a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on 14 Buys, 11 Holds, and 11 Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average TSLA price target of $336.04 per share implies 36.8% upside potential.
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