Bank of America (BAC) has lowered its price target on Tesla (TSLA) stock by 22% as trade tariffs are likely to further hurt the company’s electric vehicle sales.
John Murphy, a top five-star rated analyst, cut his price target on TSLA stock to $380 from $490 and reiterated a Hold-equivalent neutral rating on the shares. While the price target has been reduced, at $380, the new outlook is still more than 40% above where Tesla’s shares are currently trading.
In a note to clients, Murphy said Tesla is grappling with “renewed uncertainty” in 2025, and pointed to U.S. President Donald Trump’s tariffs on Canada, Mexico and China as a headwind for the company’s production, sales, and stock. Murphy wrote that the tariffs and potential trade war “could create a supply shock similar to COVID.”
Souring Sentiment
Murphy also noted that Tesla is struggling with other issues currently, including a slowdown of production in Europe, a lack of progress on the company’s long delayed low-cost electric vehicle model, and consumer sentiment that is “souring” on the brand and its CEO Elon Musk.
Tesla has reported sharply lower sales in recent months, notably in China and Europe, as a consumer backlash against Musk and his involvement with the Trump administration intensifies. The trade tariffs are expected to have an outsized impact on the automotive industry as vehicle production is increasingly global and spread across many countries.
TSLA stock has declined 34% this year.
Is TSLA Stock a Buy?
Tesla stock currently has a consensus Hold rating among 35 Wall Street analysts. That rating is based on 13 Buy, 12 Hold, and 10 Sell recommendations issued in the last three months. The average TSLA price target of $347.59 implies 31.06% upside from current levels.
