As Tesla (NASDAQ: TSLA) attempts to recover from the recent sell-off triggered by the fallout between CEO Elon Musk and President Donald Trump, Wall Street remains slightly bearish over the next 12 months.
On Friday, TSLA shares gained 3.6%, trading at $295.14, as investors turned bullish with signs the feud was cooling. This provided a welcome breather after Tesla shares plunged as much as 14% on Thursday, wiping out $152 billion in market value.
It remains uncertain how Tesla will respond to Musk and Trump’s breakup in the long term, especially since their initial close ties were seen as bullish for the electric vehicle (EV) maker. Investors had also anticipated a rally after Musk officially exited his government role to focus more on his companies.
At Wall Street, 36 analysts tracked by TipRanks set an average 12-month price target of $285.91, implying a 3.13% downside from Tesla’s last close. Analyst sentiment is evenly split: 16 recommend buying, 10 suggest holding, and 10 advise selling, resulting in a consensus ‘Hold’ rating.
Optimistic forecasts place Tesla as high as $500 per share, while the most bearish see a steep drop to $19.05.
Analysts take on Tesla stock
On June 6, Barclays analyst Dan Levy described the recent sell-off as a possible “sell the news” reaction ahead of Tesla’s Robotaxi event on June 12. He acknowledged Tesla’s strong position in autonomous vehicles and the sizable market opportunity but warned that near-term fundamentals may not be fully priced in. Barclays maintained an ‘Equal Weight’ rating and a $275 price target.
That same day, Morgan Stanley’s Adam Jonas highlighted Tesla’s growth potential beyond electric vehicles, focusing on ventures into autonomous driving, AI, and robotics. He discussed Tesla’s possible entry into drones and eVTOL aircraft, prompted by Musk’s cautious comments about aircraft development. Jonas projected the Urban Air Mobility market could grow from $1 trillion in 2040 to $9 trillion by 2050. According to Jonas, Tesla’s manufacturing and technology expertise positions it well to capitalize on this emerging “Low Altitude Economy,” with potential value added between $100 and $1,000 per share.
Meanwhile, Oppenheimer analyst Colin Rusch maintained a ‘Perform’ rating with a cautious but neutral outlook. He pointed to Tesla’s ongoing brand repair and rollout of its Physical AI strategy. Rusch also flagged the public Musk-Trump disagreement as a factor that could influence renewable energy policy timing. He cautioned about investor concerns over delays in Tesla’s autonomy platform related to photon-counting camera technology.
Earlier, on June 5, Goldman Sachs analyst Mark Delaney lowered Tesla’s price target from $295 to $285 with a ‘Hold’ rating due to disappointing vehicle deliveries and reduced earnings forecasts in key regions. Tesla’s sales in Germany dropped 36.2% in May despite overall EV market growth, while shipments in China fell 15% year-over-year, with a slight rebound compared to April.
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