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The Key Takeaways
- Tesla shares are down 18% during the last five sessions of trading, and 6% Thursday after fourth quarter delivery numbers fell short.
- Analysts at Wedbush remain bullish as they believe a second Trump administration will bring some positive regulatory changes for Tesla’s robotaxi plan and Tesla.
- Meanwhile, JPMorgan analysts think Trump's promise to eliminate the EV tax credit system could hurt Tesla's sales as competition continues to increase in the EV market.
Tesla’s (TSLA) stock has fallen by 18% during a losing streak of five days. The decline culminated with a 6% drop to $379.28 on Thursday, following the disappointing numbers from fourth quarter production and delivery.
Wedbush analysts maintained their “outperform” JPMorgan analysts maintained a rating of $515 with an estimated price. “underweight” Tesla’s 2025 trajectory is shown by the range of opinions expressed in both its rating and target price.
Ten of the 19 analysts tracked by Visible Alpha rate Tesla stock as a "buy," along with six "hold" and three "sell" ratings and an average price target of $319.72, meaning most analysts expect the stock to slip further in the coming months.
Wedbush Remains Bullish; JPM remains bearish
Wedbush analysts wrote following Thursday's deliveries data that while it missed estimates, the 495,570 vehicles Tesla delivered in the quarter was a "respectable" number. They said they would be "strong buyers" of any decline in Tesla shares, as they believe shares will rise this year as a second Trump term benefits Tesla by accelerating the regulatory path to the company's autonomous taxis hitting the road.
JPMorgan analysts, however, were more focused on the EV maker's first-ever year-over-year decline in deliveries in 2024. The analysts on Friday also noted their concern that Trump's promise to eliminate clean energy programs like EV tax credits could slow Tesla's sales at a time when domestic and international competitors are consistently launching new EVs.
The JPM analysts said they have spoken to management from other carmakers who expect Trump to "substantially curtail or altogether eliminate" the EV tax credit system that helps make up a "significant minority of Tesla's current profitability."
Tesla shares finished Friday morning slightly higher.
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