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Takeaways
- Tesla shares rose by close to 4% on Friday, amid a market rebound. However, they posted losses for the eight week in a line, and some Wall Street analysts expect further declines.
- Wells Fargo and JPMorgan analyst said they expect that the stock will lose about half its value, as it had since a peak in December.
- Visible Alpha’s analysts have rated the targets of Wells Fargo and JPMorgan as particularly bearish. They are well below average.
Tesla (TSLA), despite a market rebound, posted losses for the 8th week in a a row. Some analysts expect the stock to continue to decline.
The stock is down nearly half of its value compared to its peak closing price on December 17, which was $479.86. Analysts from Wells Fargo lowered their price target to $130, and JPMorgan to $120. This suggests that the stock may lose nearly half its value since Friday’s closing price of $249.98.
The new price targets from Wells Fargo and JPMorgan are particularly bearish, well below the average of analysts tracked by Visible Alpha at $366, which would imply a premium of almost 50% from Friday's level.
Wells Fargo analysts initially dismissed concerns that political backlash against Elon Musk and his involvement in the Trump administration could hurt the EV manufacturer. However, recent protests and reports about vandalism against Tesla cars have “raised the stakes” for potential buyers. Analysts cited declining sales in Europe, the U.S. and China.
Reports also emerged on Friday that Tesla was among several automakers who raised concerns with U.S. trade representative’s office regarding the Trump administration’s tariffs. According to reports, Tesla and other automakers wrote letters stating that tariffs could result in retaliation by other countries which could harm the U.S. automotive industry.
