Seeking Alpha – Wells Fargo warns Tesla could fall 50% after deliveries, earnings, and the Cybercab rollout disappoint
Editors note: glad to see at one analyst appreciate that the June “Cybercab” rollout is a fraud.
See original article by Clark Schultz at Seeking Alpha
Wells Fargo doubled down on its negative view of Tesla (NASDAQ:TSLA) on Tuesday. Analyst Colin Langan and his team continue to model for delivery growth declines and expect price cuts to hit the company’s margins. The EV stock was added to Wells Fargo’s Tactical Ideas List due to the potential for a share price slide.
“As EV adoption flattens in the US & EU and competition heats up in China, we see littleimmediate levers to pull to increase volumes,” warned Langan. He also reminded investors that second-half headwinds include the $7.5K IRA EV buyer tax credit likely being cut. Notably, Tesla’s (NASDAQ:TSLA) earnings per share tally is seen falling 25% year-over-year in 2025.
Wells Fargo is also skeptical of a safe and successful Austin Cybercab launch, given limited unsupervised testing and the EV giant’s vision-only approach. Langan said experts believe TSLA’s autonomous vehicle technology comes with considerable safety concerns. “Anything short of a deployed fleet ride-hailing paying consumers by this June will likely be seen as disappointing,” he warned.
Wells Fargo’s price target on Underweight-rated Tesla (TSLA) of $130 represents more than 50% downside from the current share price of $276. The 52-week high for Tesla (TSLA) is $488.54 and the low mark was $138.80. Shares broke 6.2% higher on Tuesday to cut into the large year-to-date decline.
See original article by Clark Schultz at Seeking Alpha
