Wall Street is increasingly turning bearish on Tesla (NASDAQ: TSLA) in the short term as the company struggles with declining sales and backlash against CEO Elon Musk for his political stance.
The pessimistic outlook from analysts coincides with a period when the TSLA stock is striving to hold above key support levels.
In this case, at the close of the last trading session, the $250 support emerged as a key level to watch, with TSLA ending the day at $262.67, down 0.30%. Year-to-date, Tesla stock has plunged over 30%, making it the second-worst-performing stock in the S&P 500 in 2025.
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Generally, Tesla’s struggles have intensified as Musk’s political involvement has sparked backlash from consumers and investors.
His alignment with conservative policies, support for far-right European parties, and ties to the Donald Trump administration have potentially alienated buyers. Meanwhile, sales in European markets have declined amid rising competition from Chinese EV manufacturers.
Wall Street bearish Tesla stock outlook
Now, some Wall Street analysts have noted the company’s recent struggles and offered revised outlooks.
On March 10, Redburn-Atlantic reiterated its ‘Sell’ rating on Tesla, maintaining a price target of $160. Analyst Adrian Yanoshik warned of another year of stagnant growth due to a lack of imminent new vehicle launches. He highlighted sluggish registration data, potential cash flow strains from high inventories, and the risk of disappointment in the firm’s early April delivery report.
On the same date, UBS lowered its Tesla price target to $225 from $259 while maintaining a ‘Sell’ rating. Analyst Joseph Spak cut the 2025 first-quarter delivery forecast to 367,000 vehicles, down 5% year over year and 26% quarter over quarter, citing softer demand and higher promotional activity.
Elsewhere, on March 5, Goldman Sachs (NYSE: GS) cut its TSLA stock price target from $345 to $320, citing weaker delivery trends despite potential gains from Full Self-Driving (FSD) software. Analyst Mark Delaney reiterated a ‘Neutral’ stance, highlighting underwhelming deliveries in key markets like China, Europe, and the U.S., with consumer survey data signaling broader demand challenges.
Bank of America (BofA) slashed Tesla’s price target from $490 to $380, maintaining a ‘Neutral’ rating due to declining sales, brand perception risks, and uncertainty over key product launches. In an investor note on March 4, the firm flagged Tesla’s 45% year-over-year sales drop in the EU, a lack of updates on its low-cost model, and potential Robotaxi delays as major concerns.
Bullish Tesla stock outlook
However, not all of Wall Street is concerned with Tesla’s current struggles. Some experts maintain a long-term bullish stance due to the company’s dominance in the EV market.
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. While acknowledging weaker-than-expected deliveries, Jonas views this as part of Tesla’s transition from a pure EV maker to a diversified technology company leveraging artificial intelligence (AI) and robotics. Morgan Stanley remains confident in Tesla’s expanding market potential, with a bullish scenario projecting that the stock could soar to $800.
Lastly, Wedbush analyst Dan Ives, a Tesla bull, defended the stock amid the ongoing decline, calling this a “gut check moment” for investors. He reiterated his ‘Outperform’ rating, maintained a $550 price target, the highest among Wall Street analysts, and added Tesla to Wedbush’s ‘Best Ideas List’. Despite growing concerns over Musk’s political ties, Ives downplayed the risk to Tesla’s global sales and expects the executive to refocus on the company.
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