Tesla shares rose 4% on Friday as markets rebounded, but the electric vehicle maker still posted losses for the eighth week in a row. Analysts from Wells Fargo and JPMorgan predict further declines, with some forecasting a potential loss of nearly half its value.
The stock’s performance has been affected by declining sales in major markets, including the US, China, and Europe. Recent protests and vandalism against Tesla vehicles have raised concerns among investors. Additionally, Tesla joined other automakers in expressing concerns about tariffs imposed by the Trump administration.
Analysts from Wells Fargo initially dismissed potential backlash to CEO Elon Musk’s involvement with the Trump administration, but now consider it a significant risk factor. The company’s price targets are well below the average of analysts tracked by Visible Alpha, suggesting nearly half its value could be lost.
Tesla’s shares have fallen since November 5th, and have declined by nearly half from their peak in December. The stock’s current price is $249.98, with Wells Fargo predicting a target of $130 and JPMorgan setting its target at $120.
Source: https://www.investopedia.com/why-some-tesla-bears-say-the-stock-could-lose-nearly-half-its-value-again-11697140