Tesla (TSLA) has hit a rough patch lately. The company has encountered several challenges and difficulties. Raw material prices have been all over the place, and trade policies and tariffs have added to the mess. The phasing out of government perks for electric cars in key markets has taken away some of Tesla’s edge. All the while, Elon Musk, the owner of the EV maker, has taken a key role in the government.
Since the start of 2025, Tesla’s stock has taken a nosedive, shedding 40% year-to-date. TSLA stock has declined by over 8% in the last 24 hours. Despite the downturn, the company’s valuation is still sky-high, with a forward price-to-earnings ratio in the triple digits. Falling vehicle sales and profits haven’t helped either. The lack of news on a cheaper car model has also intimidated investors. All these issues have led to a big drop in Tesla’s stock price, with the company losing over $500 billion in market value since its peak in December 2024.
Analysts’ Disagreement
Wall Street analysts can’t seem to agree on Tesla’s future. Some are bullish, seeing a bright future for the company. For instance, Morgan Stanley (MS), Wedbush, TD Cowen, Robert W. Baird, Stifel Nicolaus, and RBC Capital are optimistic, pointing to Tesla’s long-term robotics and self-driving car initiatives. They believe that Tesla’s innovation will pay off big time down the road.
On the flip side, some analysts are bearish. Firms like Redburn Atlantic, UBS, and Erste Group worry about demand, margins, and Elon Musk’s political antics. They think these issues will keep dragging Tesla down. Then there are the neutral analysts. Goldman Sachs (GS), Bank of America (BAC), DBS, and Barclays are cautious but not totally down on Tesla. They think the company could bounce back if it hits its delivery targets or new products take off.
Is Tesla a Buy, or a Sell?
According to the consensus sentiment, Tesla is considered a Hold. The average price target for TSLA stock is $340.31, implying a 43.96% upside potential.
In Short
Tesla has a lot on its plate right now. The company faces economic and policy headwinds, valuation concerns, and financial performance issues. Wall Street analysts are split on what the future holds. Some see a bright future, while others are more skeptical. Only time will tell which side is right.