So far, 2024 has been nothing if not highly eventful for the electric vehicle (EV) industry and one of the most notable sufferers amidst what appears to be the bursting of the EV bubble – at least in the U.S. – is Elon Musk’s Tesla (NASDAQ: TSLA).
Throughout 2023, Tesla seemingly held its ground in the stock market and even achieved record figures in terms of deliveries, but the start of 2024 marked a sharp turn with the shares dropping nearly 30% year-to-date (YTD) and demand falling sharply – as dramatically evidenced by the fact that Elon Musk’s EV maker sold only a single car in South Korea in January.
By March 2024, Tesla’s performance had taken a toll on analysts’ outlook for the company, with Wells Fargo (NYSE: WFC) issuing a significant downgrade on Tuesday, March 13.
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Wells Fargo downgrades Tesla stock to underweight
Indeed, on March 13, Wells Fargo issued a new rating for the shares of Elon Musk’s Tesla Motors.
The banking giant downgraded TSLA from “equal weight” to “underweight” and updated its price target for the EV maker, lowering it from $200 to $125.
Adding to the gloomy outlook, Wells Fargo also stated that it sees a real possibility of Tesla stock dropping as low as $44 in 12 months’ time – a possible 75% downside from the press time price of $177.54.
Despite the high potential downside projected by the bank, it isn’t the most severe forecast for Tesla stock. Earlier in 2024, Gordon Johnson, the founder and CEO of GLJ Research, estimated TSLA could go as low as $23.53 in 12 month’s time.
On the other hand, Tesla’s general performance – particularly with regard to its strong production and delivery figures – ensured the EV maker still has its bulls.
Also on March 13, Wedbush’s Dan Ives stated on X that TSLA might reach a valuation of $1 trillion in the coming months and that it still has a real chance of delivering 2.1 million vehicles in 2024 despite a slow Q1.
Tesla stock price chart
Tesla stock has had its fair share of troubles in 2024. Since the year started, TSLA shares have declined 28.53%, and their more recent performance hasn’t been much stronger despite a brief price stabilization in February.
The last 30 days saw Tesla drop 3.52% and the latest 7 days saw a fall of 1.47%. On Tuesday, March 12 – the most recent full trading day – TSLA stock closed 0.13% in the red at $177.54.
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