Shares of EV maker Tesla (TSLA) have struggled since hitting their record high of $488.54 on December 18, 2024, by plummeting to around $330 at the time of writing. This decline has been fueled by various factors that include soft sales in overseas markets, such as China, where Tesla sold 63,238 vehicles in January – a 33% drop from December. Sales in Australia also fell 33% year over year in January, according to the Electric Vehicle Council.
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Additionally, President Trump’s new tariffs on steel and aluminum, which are key raw materials used by Tesla, are expected to raise costs for the company. Trump’s trade war with China also poses a risk, as 40% of Tesla’s battery material suppliers are Chinese companies. Furthermore, Tesla’s fourth-quarter earnings report was disappointing, as the company missed analyst estimates and reported an 8% year-over-year decline in automotive sales.
These challenges have led analysts to aggressively mark down earnings per share estimates for Tesla in 2025 and 2026. In fact, JPMorgan analyst Ryan Brinkman, who is one of the most bearish analysts covering the company, has warned investors that there is a high risk of mean reversion due to deteriorating performance and future expectations. As a result, Brinkman has an Underperform rating and a $135 price target for Tesla.
Is Tesla a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on 12 Buys, 12 Holds, and 10 Sells assigned in the past three months, as indicated by the graphic below. After a 75% rally in its share price over the past year, the average TSLA price target of $335.86 per share implies 1.5% upside potential.
