Shares of EV maker Tesla (TSLA) fell on Friday due to investor concerns about a potential China-U.S. trade war. Additionally, recent data from the China Passenger Car Association showed a decline in Tesla’s China-made vehicle shipments in January, with an 11.5% drop from the previous year and a 32.5% decrease from December. However, this decline was expected due to the redesign of the Model Y, which affected production at Tesla’s Shanghai factory.
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In another market, Tesla’s deliveries in Australia were down 33% year-over-year in January, with a significant 63% drop in Model 3 deliveries. Investors are closely watching these delivery reports to determine whether the decline is primarily due to the Model Y redesign or if there are other factors at play, such as consumer backlash against CEO Elon Musk due to his involvement in politics.
Nevertheless, Tesla’s full-year 2024 revenue was $97.69 billion, which represented a modest 1% increase from the previous year. While this growth rate is slower than in previous years, Elon Musk and some analysts argue that Tesla’s value lies in its advancements in autonomous driving, robotaxis, AI, and energy storage.
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 95% rally in its share price over the past year, the average TSLA price target of $336.48 per share implies 9.2% downside risk.
