Tesla (NASDAQ: TSLA) is under mounting pressure on Wall Street as concerns about its dominance in key markets continue to weigh on investor confidence.
Despite the overall bearish sentiment, TSLA is showing short-term resilience. As of press time, the stock was trading at $270, up nearly 2% from the previous session. However, it remains in the red year-to-date, down 27%.
With volatility in play, investors are closely watching for a potential price bottom, which, beyond Tesla’s fundamentals, will largely depend on broader market sentiment.
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Wall Street revises TSLA stock price
In the latest setback, another major financial institution has slashed its price target for the electric vehicle (EV) giant—marking the second downgrade in just a week.
On March 4, Bank of America (BofA) took the first step, lowering its Tesla price target from $490 to $380 while maintaining a ‘Neutral’ rating.
The firm cited declining vehicle sales, brand perception challenges, and uncertainty around major product launches as key factors driving the downward revision.
Now, Goldman Sachs has joined the bearish sentiment, cutting its Tesla price target from $345 to $320. Analyst Mark Delaney pointed to “weaker delivery trends” offsetting potential revenue gains from monetization of Full Self-Driving (FSD) software. Goldman Sachs reiterated its ‘Neutral’ stance on Tesla shares.
Delaney elaborated on the decision, noting that Tesla’s delivery figures have been underwhelming across key regions, including China, Europe, and the U.S. These observations were backed by consumer survey data from HundredX, which suggested broader demand challenges.
Despite acknowledging significant improvements in Tesla’s FSD version 13 compared to v12, Delaney warned that monetization potential may be limited, particularly in China.
While Tesla’s FSD technology is advancing in the U.S., where transitioning to ‘eyes-off’ autonomy could drive adoption, Chinese competitors are already offering hands-free driver assistance without additional software purchases.
This competitive landscape raises concerns about Tesla’s ability to capitalize on FSD revenue overseas.
“Multiple competitors in China are also offering hands-free ADAS solutions without requiring an additional software package purchase (though sometimes only available on premium trims). This suggests that Tesla will face challenges in monetizing FSD in China, especially if it continues to require driver supervision,” Delaney said.
However, not all of Wall Street is bearish on Tesla. For instance, Morgan Stanley’s Adam Jonas reaffirmed Tesla as the firm’s top U.S. auto pick, maintaining an ‘Overweight’ rating and a $430 price target. While acknowledging weak deliveries, he sees no long-term narrative shift, viewing Tesla as an evolving company poised for growth in emerging technologies.
Tesla’s declining sales
The wave of revisions follows Tesla’s declining sales in various markets, with CEO Elon Musk’s political stance cited as a key reason for consumer backlash.
For instance, Tesla’s struggles in China worsened as February shipments plunged 49% year-over-year to 30,688 vehicles, the lowest since August 2022. In the first two months of 2025, China-made sales fell 28.7% to 93,926 units.
Amid these declines, Tesla is facing significant competition from Chinese manufacturers such as BYD, whose sales soared 164% to 322,846 vehicles, with growing influence in the European market.
Adding to these concerns, Tesla’s European sales continued their slide. France saw a 26% drop in February, following a 45% decline across major EV markets in January. Scandinavia also took a hit, with registrations down 42% to 48% in Sweden, Norway, and Denmark.
Featured image via Shutterstock
