Tesla shares have experienced an 18% decline over the past five trading sessions, highlighted by a significant 6% drop on Thursday, bringing the stock price down to $379.28. This downturn follows the release of fourth-quarter production and delivery figures that disappointed analysts and investors alike.
Despite the drop, analysts from Wedbush remain optimistic about Tesla’s future. They maintain an “outperform” rating with a price target of $515, emphasizing that although Tesla’s delivery numbers fell short of expectations, with 495,570 vehicles delivered in the last quarter, it is still a commendable outcome. They believe that a potential second term for former President Trump could lead to favorable regulatory conditions for Tesla, especially concerning its plans for autonomous taxi services.
In contrast, analysts at JPMorgan take a more cautious stance, sticking with an “underweight” rating and a price target of $135. They express concerns regarding Tesla’s first-ever year-over-year decline in deliveries in 2024 and the potential negative impact of Trump’s pledges to abolish the EV tax credit system. This credit is crucial for Tesla’s profitability, especially as competition in the electric vehicle market intensifies with new entrants.
Of the 19 analysts tracked by Visible Alpha, 10 have rated Tesla stock as a “buy,” while 6 have it as a “hold” and 3 as a “sell.” The average price target is set at $319.72, indicating that many analysts expect further declines in the stock’s performance in the near term.
Adding a note of hope, Tesla shares showed a slight uptick in premarket trading on Friday, suggesting that some investors may be finding value in the current price dip. Overall, while the road ahead may be challenging with both external and internal factors at play, the diverse opinions among analysts highlight the dynamic nature of Tesla’s business and the electric vehicle market as a whole.