Tesla Stock faced yet another setback as Wells Fargo analyst Colin Langan lowered his price target for the company’s stock from $135 to $130, maintaining a “Sell” rating. Langan cited a decline in Tesla’s automotive business fundamentals and increasing competition in the Chinese electric vehicle market as the primary reasons for his adjustment.
Additionally, Langan revised his first-quarter delivery estimate downward to 360,000 vehicles, reflecting weaker demand and the diminishing impact of recent price cuts. He also expressed concerns about the potential elimination of U.S. federal tax credits for electric vehicles, which could further dampen Tesla’s sales in the coming months.
Tesla Stock Deliveries Show Mixed Projections
Despite these challenges, Langan predicted a rebound in Tesla Stock’s deliveries for the second quarter, estimating 450,000 vehicles. This optimism stems from the anticipated launch of an updated Model Y and a new, more affordable vehicle referred to as the Model 2.5. However, his full-year delivery estimate was adjusted to just under 1.7 million vehicles, down from the previous estimate of slightly over 1.8 million.
Other analysts have also recalibrated their Tesla forecasts. Mizuho, for instance, recently reduced its price target from $515 to $430, citing similar concerns regarding declining demand and market pressures in China. Their revised estimates predict Tesla delivering 1.8 million vehicles in 2025 and 2.3 million in 2026, a significant decrease from earlier forecasts of 2.3 million and 2.9 million, respectively.
Tesla’s Stock Performance Remains Volatile
Tesla’s stock showed some resilience in the latest trading session, gaining 3.9% to close at $249.98. However, it remains nearly 5% lower for the week, underscoring investor apprehension amid ongoing economic uncertainties and competitive pressures.
The fluctuating stock performance reflects broader concerns about Tesla’s ability to sustain its market dominance. With increasing competition from Chinese automakers such as BYD and NIO, alongside regulatory uncertainties in key markets, Tesla faces mounting hurdles in maintaining its growth trajectory.
The Road Ahead for Tesla
While Tesla Stock remains a leader in the electric vehicle industry, shifting market dynamics present new challenges. The company’s reliance on price cuts to stimulate demand appears to be losing effectiveness, and potential policy changes regarding tax credits could further impact consumer incentives.
The upcoming launch of new models could provide a much-needed boost, but whether they will be enough to counteract declining demand remains uncertain. Analysts and investors will closely monitor Tesla’s next earnings report and delivery figures to gauge the company’s ability to navigate these evolving market conditions.
