Tesla’s stock is facing a challenging period, extending its record losing streak to seven consecutive weeks. Shares closed at $270.48 on Friday, reflecting a more than 10% decline for the week and erasing nearly all of Tesla’s post-election gains. Since peaking at nearly $480 in December, the electric vehicle maker has seen its market capitalization shrink by over $800 billion.
Several Wall Street firms, including Bank of America, Goldman Sachs, and Baird, have significantly lowered their price targets for Tesla, citing weak vehicle sales, production delays, and increasing competition in crucial markets such as China and Europe. Investors are also growing concerned about the lack of updates on Tesla’s highly anticipated low-cost model, which has fueled further skepticism about the company’s future growth.
Beyond operational hurdles, a key factor contributing to Tesla’s stock struggles is the increasing scrutiny over CEO Elon Musk’s political involvement. Since taking on a political advisory role in the Trump administration as the head of the newly formed Department of Government Efficiency (DOGE), Musk’s outspoken views and controversial social media posts have led to backlash. His involvement in aggressive cost-cutting measures and attacks on political figures has sparked concern among investors, some of whom fear that Musk’s political actions are eroding Tesla’s brand image and consumer sentiment.
This discontent appears to be affecting sales in key markets. In Germany, Tesla registrations dropped a staggering 76% last month, even as the overall electric vehicle market expanded. Similarly steep declines were reported in France, Norway, and Spain. In the U.S., Tesla’s market share is shrinking, and a recent survey showed that consumer interest in Tesla vehicles has fallen since Musk’s acquisition of Twitter (now X) in 2022.
However, some analysts remain optimistic about Tesla’s long-term outlook. Dan Ives of Wedbush Securities sees the recent sell-off as a potential buying opportunity, maintaining a $550 price target for the stock. Ives believes that Tesla’s upcoming product cycle, which includes a lower-cost EV and advancements in autonomous driving, could restore investor confidence. Similarly, TD Cowen analysts expect Tesla’s sales momentum to recover as new models are expected to roll out in 2025-26.
Despite these positive projections, other analysts are more cautious. JP Morgan has set a bearish price target of $135, warning that Tesla’s stock has become detached from its fundamentals. Analysts at UBS share similar concerns, particularly regarding Tesla’s ambitious plans for self-driving technology and humanoid robots, questioning whether these ventures can truly drive future growth.
Tesla’s stock continues to face a volatile environment, as it navigates operational challenges, declining consumer sentiment, and the ramifications of Musk’s controversial political engagement. Investors will be watching closely to see whether Tesla can regain momentum or whether the company’s valuation remains under pressure.
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