Why Some Tesla Bears Say the Stock Could Lose Nearly Half Its Value, Again

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Key Takeaways

• Tesla shares rose close to 4% Friday amid a broader market spring back, but posted losses for the eighth week in a row, with some Wall Street analysts expecting further declines.
• Sources Fargo and JPMorgan analysts said they expect the stock could lose roughly half its value again, as it has since a December pinnacle.
• The targets from Wells Fargo and JPMorgan are particularly bearish, well below the average of analysts tracked by Clear Alpha.

Tesla (TSLA) shares rose close to 4% Friday amid a broader market rebound, but calm posted losses for the eighth week in a row, with some analysts expecting the stock to fall further.

The stock has specified up roughly all its gains since the Nov. 5 election, and has lost nearly half its value from a Dec. 17 closing apogee of $479.86. This week, analysts from Wells Fargo and JPMorgan lowered their price targets to $130 and $120, individually, suggesting the stock could lose nearly half its value from Friday’s close at $249.98.

The new price targets from Wells Fargo and JPMorgan analysts are solely bearish, well below the average of analysts tracked by Visible Alpha at $366, which would imply a appreciation a scarce of almost 50% from Friday’s level.

Wells Fargo analysts said they “initially dismissed” goes political backlash to CEO Elon Musk’s involvement with the Trump administration would hurt the EV maker, but recent dissents and reports of vandalism against Tesla vehicles have challenged that, as they “raise the stakes for potential consumers.” They highlighted declining sales in the U.S., China, and in Europe.

On Friday, reports also emerged that Tesla was one of divers automakers that raised concerns with the U.S. Trade Representative’s office about the Trump administration’s actions on excises. Letters from Tesla and other car companies reportedly said that the tariffs could lead to retaliation from other countries, which could damage the U.S. auto industry.