Tesla Analyst Downgrades Stock Price Target by 50%, Warns of “Darker Days Ahead” for Uber-Bull Outlook

This article does not offer investment advice. The author currently holds no positions in any of the stocks mentioned.

Market Turbulence for Tesla Shares

Tesla’s stock has experienced significant volatility this year, witnessing a decline of approximately 40% year-to-date. This downturn is largely attributed to increasing competition from Chinese electric vehicle manufacturers, coupled with politically motivated boycotts in both the United States and the European Union. In light of these challenges, a prominent Tesla analyst appears to have recognized the storm ahead, reducing his previously optimistic stock price target by nearly 50%.

$TSLA: Wedbush cuts target price to $315 from $550

“We remain bullish on Tesla, but this is a critical moment for Musk. The brand is weakening as a political symbol, and the situation is unsustainable. Musk has overcome major challenges before — this may be his toughest yet.”

— *Walter Bloomberg (@DeItaone) April 6, 2025

Price Target Adjustment by Wedbush

Dan Ives of Wedbush has lowered his price target for Tesla shares significantly, moving from $550 to $315, marking a reduction of 42.7%.Despite this cut, he maintains an ‘Outperform’ rating on the stock. While Ives reiterates his long-standing bullish perspective on Tesla, he openly acknowledges the critical nature of the current situation. He suggests that Elon Musk must act decisively to navigate these turbulent waters, or else face more severe repercussions.

Challenges Ahead for Tesla

Ives elaborates on the challenges facing the electric vehicle giant, stating:

“We have been one of the biggest supporters of Musk and Tesla over the last decade… but this situation is not sustainable and the brand of Tesla is suffering by the day as a political symbol.”

This perspective may offer some reassurance to anxious Tesla investors. Ives highlights that Musk has faced similar adversity in the past and managed to emerge stronger. However, he warns that the current challenge could prove to be formidable.

Sales Decline Amid Increased Competition

Recent performance metrics further underscore Tesla’s struggles. The company reportedly experienced a significant drop in sales during the first quarter of 2025, with only 336, 681 units delivered, falling short of the expected 377, 600 units based on consensus estimates. This stark decline comes amidst intense competition from Chinese manufacturers and growing political tensions influenced by Musk’s personal brand and activities.

Notably, Tesla’s inventory has surged from 77, 330 units at the close of Q4 2024 to 103, 264 units by the end of Q1 2025. This increase occurred despite a temporary halt in production aimed at retooling for the upcoming Model Y Juniper launch.

While analysts like Gary Black from Future Fund anticipate a potential “gradual reset”in Tesla’s narrative with the anticipated launch of unsupervised Full Self-Driving (FSD) technology in Austin, tangible evidence of a turnaround remains elusive.

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