Analysts Cut Tesla Price Targets, Question Growth Prospects Amid Falling Demand and Leadership Concerns

• Wells Fargo downgraded Tesla, calling it a “growth company with no growth,” and slashed its price target from $200 to $125 per share due to slowing EV demand and delivery disappointments.

• Wedbush maintained an “outperform” rating but cut its price target from $315 to $300 per share, citing a “nightmare” first quarter with falling China deliveries and supply chain issues.

• Bernstein reiterated an “underperform” rating and cut its price target from $150 to $120 per share, forecasting tepid growth in 2024-2025 amid weakening consumer appetite for EVs in the U.S. and Europe.

• Tesla trades at a substantial premium to other automakers despite having similar margins, which is tough to justify given its growth prospects, according to Bernstein.

• Analysts cited leadership issues like Musk’s plan to move AI projects out of Tesla and a pay package dispute as concerning investors.