Tesla (TSLA) shares rebounded nearly 4% on Friday as part of a broader market recovery, but the electric vehicle (EV) giant still marked its eighth consecutive week of losses. With its stock price now hovering near pre-election levels, analysts are warning of further downside.
Tesla’s Steep Decline Since December Peak
Tesla’s stock has seen a dramatic downturn since its December 17 closing peak of $479.86, shedding nearly half its value. The latest drop has brought shares down to $249.98 as of Friday’s close, with market sentiment growing increasingly bearish.
Wells Fargo and JPMorgan Lower Tesla Price Targets
Wall Street analysts are adjusting their outlooks accordingly. This week, Wells Fargo and JPMorgan both slashed their price targets on Tesla stock to $130 and $120, respectively. If these forecasts materialize, Tesla could see its stock price cut nearly in half from its current level.
These revised targets are significantly below the consensus analyst estimate tracked by Visible Alpha, which sits at $366—implying a nearly 50% premium over Friday’s closing price.
Political Backlash and Sales Slowdown Weigh on Tesla
Wells Fargo analysts initially downplayed concerns that CEO Elon Musk’s involvement in the Trump administration could impact Tesla’s brand and sales. However, mounting protests and reports of vandalism against Tesla vehicles are now raising red flags. The firm believes this growing political backlash could deter potential buyers and put further pressure on sales.
Tesla’s declining sales across key markets—including the U.S., China, and Europe—are adding to investor concerns. The demand slowdown, coupled with heightened scrutiny over Musk’s political role, is contributing to the stock’s downward trajectory.
Tesla Warns Against Tariff Risks
Adding to the uncertainty, reports surfaced Friday that Tesla has expressed concerns to the U.S. Trade Representative’s office about potential tariffs imposed by the Trump administration. In letters submitted alongside other automakers, Tesla reportedly warned that retaliatory tariffs from other nations could negatively impact the U.S. auto industry.
With these factors in play, investors and analysts alike will be closely watching Tesla’s next moves as the company navigates an increasingly complex political and economic landscape.
