The situation with Tesla (NASDAQ: TSLA) stock in the first quarter (Q1) of 2025 is reminiscent – if different – of October 2022.
Specifically, after Elon Musk completed his acquisition of Twitter – now known as X – TSLA shareholders grew worried over the billionaire’s focus on his new social media platform and expressed their dissatisfaction by ending the rally that took the equity to its previous all-time high (ATH).
Similarly, the 2025 bloodbath came near the time of Donald Trump’s inauguration as Musk was taking the reins of the Department of Government Efficiency (D.O.G.E.).
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By press time, Tesla stock was 31.41% down in the year-to-date (YTD) chart and, with a press time price of $276.98, 42.28% below the latest ATH of $479.86 achieved on December 17.
Analysts remain mildly bullish about Tesla stock
The stock market decline had a mixed impact on prominent Wall Street analysts, and TSLA shares, despite the turbulence, retain an overall ‘hold’ rating with a plurality of 13 ‘buy’ out of the total 35 ratings, as seen in the data Finbold retrieved from TipRanks.
The average 12-month price target also paints a mixed picture. On the one hand, it demonstrates some confidence in a Tesla stock recovery as it stands at $347.59 – 27.77% – on the other, it showcases few believe that the electric vehicle (EV) maker can truly sustain levels near the $479.86 ATH it reached less than four months ago.
Majority of recent PT revisions show confidence in TSLA stock
Looking at the individual recent revisions, it might be most accurate to say that, no matter the market fluctuations, the bears have remained bearish and the bulls bullish.
Since the start of February, China Renaissance revised its TSLA stock price target from $270 to $429, President Capital from $278 to $426, and CICC from $300 to $425.
Simultaneously, multiple downgrades nonetheless landed on still-bullish forecasts. Stifel, for example, abandoned the $492 prediction in favor of the still-high $474, and Bank of America (NYSE: BAC), despite being harsher when it gave up on $490, landed at $380.
Elsewhere, the more neutral analysts also stayed the course with Goldman Sachs (NYSE: GS), reiterating its previous ‘hold’ rating while providing a moderate price target reduction from $345 to $320 on the morning of March 5.
Are the Tesla stock bears right in 2025?
Despite the mixed ratings – and despite Tesla receiving a brand new ‘buy’ ranking with a price target of $475 from Benchmark as recently as February 12 – it would appear that the bears have the right of it at press time.
This year started poorly for the EV maker as it reported its first annual deliveries drop in early January, and the data published since hasn’t been much better. For example, Tesla has seen an exceptionally large sales drop in the EU – reported at approximately 45% – and a 51% drop in the sales of vehicles manufactured in China in February compared to January.
Furthermore, the company’s cars have become something of a magnet for incidents, with the most recent example of this trend being the torching of a dealership in France in early March.
The ultimate effect of such incidents may be that even those who do not oppose Musk for his closeness to Donald Trump or endorsement of AFD with statements that Germany should ‘move past’ Nazi guilt start avoiding Tesla’s for fear of property damage.
Featured image via Shutterstock
