Tesla’s stock has experienced a significant decline, dropping 18% over the past five trading days, including a notable 6% dip on Thursday, resulting in a price of $379.28 per share. This downturn follows fourth-quarter delivery figures that fell short of market expectations, prompting a reevaluation from analysts.
Despite the downturn, Wedbush analysts maintain a positive outlook with an “outperform” rating and a price target of $515, citing the resilience of Tesla’s delivery numbers—495,570 vehicles delivered—as a “respectable” achievement. They believe that the prospect of a second Trump administration could favorably impact Tesla’s regulatory environment, particularly concerning its autonomous taxi initiatives.
Conversely, JPMorgan analysts have adopted a more cautious stance, retaining an “underweight” rating with a targeted price of $135. They express concerns over Tesla’s first-ever year-over-year decline in deliveries, warning that Trump’s commitment to dismantling the electric vehicle tax credit could negatively affect sales amid increasing competition in the electric vehicle market.
A review of a broader analyst consensus shows that out of 19 analysts, ten label Tesla stock as a “buy,” with six recommending it as a “hold” and three advising a “sell”. The average price target across these ratings stands at $319.72, indicating a general expectation of further declines in the near future.
In a silver lining, Tesla shares exhibited a slight uptick in premarket trading on Friday, suggesting some market resilience despite the recent volatility.
Overall, the situation presents a mixed bag of opinions and expectations for Tesla, making it crucial for investors to stay informed about market dynamics and company performance as 2025 approaches. With a wealth of innovation on the horizon, there remains hope for a rebound as Tesla navigates these challenges and capitalizes on advancements in the electric vehicle sector.