Why Analysts Are Divided on Tesla Stock After Lackluster Q4 Deliveries Data | Global News Avenue

Tesla (Tesla) shares have fallen for five consecutive trading days, down 18%, and fell 6% on Thursday to $379.28 Fourth-quarter production disappoints and delivery data have some analysts confirming their views on the electric car maker.

Wedbush analysts maintain Their Outperform Rating $515 price targetJPMorgan analysts maintained their “underweight” rating and $135 price target, demonstrating a different view on Tesla’s development trajectory into 2025.

Ten of the 19 analysts tracked by Visible Alpha rate Tesla stock a “buy,” while six have a “hold” rating and three have a “sell” rating. , with an average price target of $319.72, meaning most analysts expect the stock to decline further in the coming months.

Wedbush remains bullish, JPMorgan remains bearish

Wedbush analysts wrote after the delivery figures were released on Thursday that while Tesla’s 495,570 vehicles delivered during the quarter fell short of expectations, it was a “respectable” number. They said they would be “strong buyers” if Tesla shares fell, as they believe Tesla’s stock price will rise as a second Trump term accelerates the regulatory process to put the company’s self-driving taxis on the road. It will rise this year.

However, JPMorgan analysts are more concerned about the electric car maker’s first year-over-year decline in deliveries in 2024. Analysts also noted on Friday that they were concerned that Trump’s pledge to eliminate clean energy programs such as electric vehicle tax credits could slow Tesla’s sales as domestic and foreign competitors continue to roll out new electric vehicles.

JPMorgan analysts said they have spoken to executives at other automakers and they expect Trump to “significantly reduce or completely eliminate” the electric vehicle tax credit system that helped constitute Tesla’s an important component of current profitability”.

Tesla shares rose slightly in pre-market trading on Friday.