The stock has dropped over 10% this week, reaching its lowest level since Election Day, November 5, when it closed at $251.44. Since its peak of nearly $480 on December 17, Tesla’s market cap has decreased by more than $800 billion, the report adds.
Per CNBC
, Wall Street firms, including Bank of America, Baird, and Goldman Sachs, have reduced their price targets for Tesla. Bank of America lowered its target from $490 to $380, citing concerns about declining vehicle sales and the absence of updates on a low-cost model. Goldman Sachs adjusted its target to $320 from $345, referencing falling electric vehicle sales in Europe, China, and parts of the U.S. during the year’s first two months.
The firm also mentioned challenges in China, where competitors typically include smart driving features without requiring separate software purchases. Baird added Tesla to its “bearish fresh picks,” pointing to production downtime as the company transitions to manufacturing a new version of the Model Y SUV.
Also read: Tesla sales crash 76% in Germany as Musk backs far-right party amid EV boom
Concerns extend beyond sales and production figures. CNBC
notes that investors are evaluating the influence of Musk’s political involvement and his role in the Trump administration on Tesla’s demand.
As head of the Department of Government Efficiency (DOGE), Musk has become a prominent figure in efforts to reduce federal workforce and spending. His political rhetoric on social media and controversial statements have fueled anti-Musk and anti-Tesla sentiment, leading to protests and incidents of vandalism at Tesla facilities.
Even Tesla’s strongest supporters are acknowledging the challenges Musk’s politics bring to the brand. Cleantechnica, a long-time Tesla advocate, published a column questioning whether Tesla owners should sell their vehicles and whether Musk should be removed as CEO.
Despite the challenges, Wedbush Securities added Tesla to its “Best Ideas” list, setting a 12-month price target of $550. The firm views the Trump administration’s deregulatory agenda as beneficial for Tesla, aligning with the company’s vision for autonomous vehicles.
Tesla bulls remain optimistic about upcoming developments, including affordable new EV models, a robotaxi service, and factory-ready humanoid robots. Analysts at TD Cowen expressed confidence in Tesla’s early stages of a 2025-26 product cycle that could drive volume growth and improve share price sentiment.
— With inputs from CNBC.
Also read: Tesla faces uphill battle in India’s price-conscious market
