Tesla (NASDAQ: TSLA) stock has reclaimed the $250 resistance as the electric vehicle (EV) giant appears unbothered by the latest Wall Street price cuts.
Notably, despite recent struggles, marked by backlash against CEO Elon Musk, largely due to his political involvement and slowing sales, most of Wall Street has turned bearish on the company, warning of further losses ahead.
By press time, TSLA was trading at $250, up over 8% for the day, invalidating the recent bearish movement that had put Tesla at risk of falling below $220. However, the stock still has a long way to go, as its 2025 losses remain elevated at nearly 35%.
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JPMorgan slashes TSLA stock price
Tesla’s future looks complicated after JPMorgan became the latest entity to offer a pessimistic outlook. Specifically, the bank’s analyst Ryan Brinkman lowered his price target from $135 to $120, reiterating an ‘Underweight’ rating. The latest price implies a 51% drop from Tesla’s current valuation.
The downgrade stems from a sharply lower delivery outlook, driven by waning demand and mounting consumer backlash against the brand.
Amid growing discontent over Musk’s political affiliations, Tesla faces customer protests, sales boycotts, and a rise in secondhand vehicle owners offloading. Brinkman warned that this sentiment shift could further damage Tesla’s brand and impact future sales.
As a result, JPMorgan now expects Tesla’s Q1 2025 deliveries to hit just 355,000 units, an 8% year-over-year decline and a staggering 28% drop from the previous quarter. This projection also sits 15% below Bloomberg’s consensus estimate of 418,000 deliveries, underscoring the severity of Tesla’s demand slump.
Wall Street’s bearish TSLA stock outlook
Other bearish sentiment came from Redburn-Atlantic, which on March 10 reaffirmed its ‘Sell’ rating with a $160 price target. It cited stagnant growth, weak registrations, and high inventories ahead of the April delivery report.
UBS lowered its Tesla price target to $225 from $259, cutting Q1 2025 delivery estimates to 367,000 vehicles (-5% YoY, -26% QoQ), citing softer demand and increased promotions.
On March 5, Goldman Sachs trimmed its Tesla target from $345 to $320, maintaining a ‘Neutral’ rating. Analyst Mark Delaney flagged sluggish deliveries in China, Europe, and the U.S. despite potential FSD gains, with consumer data pointing to broader demand concerns.
However, some on Wall Street remain bullish on Tesla’s long-term prospects.
For instance, on March 3, Morgan Stanley’s Adam Jonas reaffirmed Tesla as the firm’s top automotive pick, maintaining an ‘Overweight’ rating and a $430 price target. Despite weak deliveries, he sees Tesla evolving into a diversified tech company leveraging AI and robotics, with a bullish case projecting an $800 stock price.
Meanwhile, Wedbush’s Dan Ives defended Tesla amid its slump, calling it a “gut check moment” for investors. He reiterated his ‘Outperform’ rating and maintained his Street-high $550 target.
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