Tesla’s stock has seen a significant decline, suffering an 18% drop over the past five trading sessions, including a 6% decrease on Thursday, bringing shares down to $379.28. This downturn follows disappointing fourth-quarter production and delivery figures, which fell short of analyst estimates.
Despite the challenges, Wedbush analysts remain optimistic about Tesla, maintaining an “outperform” rating and setting a price target of $515. They believe that a potential second term for former President Trump could create favorable regulatory conditions for Tesla and its ambitious robotaxi plans. Conversely, JPMorgan analysts express caution, holding an “underweight” rating with a $135 price target. They predict that Trump’s intentions to eliminate the electric vehicle tax credit could adversely affect Tesla’s sales, especially as competition in the EV market intensifies.
Analytical data reveals a diverse range of opinions on Tesla’s stock, with ten out of 19 analysts categorizing it as a “buy,” six as “hold,” and three as “sell.” The average price target across these analysts is $319.72, suggesting that many expect the stock to see further declines in the near future.
Notably, Wedbush pointed out that although Tesla’s delivery numbers missed projections, the 495,570 vehicles delivered during the quarter is still commendable. They advocate for buying Tesla shares at lower prices, projecting potential growth this year supported by favorable political conditions. In contrast, JPMorgan emphasized the concerning trend of Tesla experiencing its first year-over-year drop in deliveries for 2024. They highlighted conversations with other automakers who are wary of expected cuts to EV tax credits that contribute significantly to Tesla’s profitability.
Interestingly, in premarket trading on Friday, Tesla’s shares exhibited a slight uptick, hinting at possible market resilience despite the recent downtrend.
This news signals a critical juncture for Tesla, as it navigates through varying analyst perspectives and potential political shifts. Investors and enthusiasts alike will be keenly watching how the company adapts to both market challenges and opportunities in the evolving landscape of electric vehicles.