Trump and Musk Might Be Making Up. Should You Buy Tesla Stock Here?
Investors are returning to Tesla (TSLA) shares on Tuesday amidst signs of a reconciliation between the automaker’s chief executive Elon Musk and President Donald Trump.
Trump confirmed plans of keeping Starlink at the White House today, adding “I wish him well,” to which the billionaire responded with a heart emoji on X.
Despite today’s gain, Tesla stock is down more than 10% versus its 1-month high.
Wells Fargo Says Tesla Stock Could Crash to $120
Tesla stock is gaining at the time of writing also because the EV maker is scheduled to launch its much-awaited robotaxi services in Austin on June 12.
Still, Wells Fargo analyst Colin Langan reiterated his “Underweight” rating on TSLA shares this morning, saying “Tesla’s fundamentals of the core auto business continue to weaken.”
Recent data suggests the company’s global deliveries were down 23% on a year-over-year basis in May – which could lead to continued weakness in margin in the second quarter, he added.
Langan’s $120 price target on the EV stock indicates potential downside of about 60% from here.
TSLA Shares Faces a Myriad of Headwinds in 2025
Wells Fargo warns that Tesla’s work on self-driving vehicles and its upcoming launch of robotaxi services will prove insufficient to offset weakness in its core automotive business.
Rising competition (particularly from Chinese players like BYD (BYDDY)) and the subsequent slowdown in sales momentum were among other reasons the investment firm cited for its bearish view on TSLA stock on Tuesday.
According to Colin Langan, higher tariffs under the Trump administration could make things even more difficult for the EV maker in the second half of 2025.
Similar concerns also made JPMorgan analysts recommend pulling out of Tesla stock on Tuesday. Note that the electric vehicle manufacturer does not currently pay a dividend to appear any more attractive either.
Wall Street Doesn’t Recommend Buying Tesla Anymore
Tesla stock has fallen out of favor with other Wall Street analysts due to aforementioned headwinds as well.
The consensus rating on TSLA shares now sits at “Hold” only with the mean target of about $292 indicating potential downside of nearly 10% from current levels.
On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.