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Wall Street Price Prediction: Tesla’s Share Price Forecast for 2025

Wall Street Price Prediction: Tesla’s Share Price Forecast for 2025

  • 18.03.2025 18:51
  • msn.com
  • Keywords: High Volatility

Tesla's stock has dropped significantly since early 2025 after strong gains in 2023-2024. Despite a bearish downgrade by Wells Fargo to $130, Wall Street's consensus target remains at $323, suggesting potential upside. Analysts note factors like Musk's ties to Trump, competition, and production challenges as key influences on Tesla's 2025 outlook.

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Tesla

Tesla

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Analyst rating: Neutral

The stock has dropped significantly since hitting its all-time high.

Context

Analysis of Tesla’s Stock Price Forecast for 2025

Key Facts and Data Points:

  • Stock Performance (2025):
    • Tesla shares dropped by nearly 40% since the start of 2025.
    • The stock fell 52.42% from its all-time high on Dec. 17, 2024.
    • Wells Fargo downgraded Tesla's price target to $130, representing a potential downside of -43.13% from the current trading price of $228.60.

Business Insights:

  • Core EV Business:

    • Tesla’s EV sales and margins have declined year-over-year, raising concerns about future prospects.

  • Autonomous Driving and Robotics:

    • Tesla's value is tied to its autonomous driving (FSD), robotics, AI, and energy businesses, which could drive future growth but remain uncertain in terms of profitability.

Wall Street’s Outlook:

  • Analyst Price Targets:

    • Range: $120 (bearish) to $550 (bullish).
    • Consensus price target: $323, implying 41.65% upside from current prices.

  • Revenue and EPS Growth:

    • Projected revenue growth: $112.091 billion in 2025 to $297.430 billion by 2030.
    • Normalized EPS growth: $2.85 in 2025 to $11.61 by 2030.

Market and Competitive Dynamics:

  • Production and Deliveries:

    • Barclays forecasts Tesla’s 2025 deliveries at 1.95 million units, below Bloomberg’s consensus of 2.08 million.

  • Challenges:

    • Declining registrations in key markets (Germany, France, California).
    • Intense competition from companies like Waymo.

Strategic Considerations:

  • AI and Autonomous Driving:

    • Tesla’s push into AI and plans for a Robotaxi launch could disrupt the market.

  • Political Environment:

    • While Tesla benefited initially from the Trump administration, these effects have waned, leaving uncertainty about future regulatory support.

Long-Term Implications:

  • Growth Potential:

    • Despite recent declines, Tesla’s long-term growth is tied to its ability to expand in EVs, AI, and energy sectors.

  • Analyst Sentiment:

    • The stock currently holds a consensus “Hold” rating, with significant upside potential if the company meets expectations.

Conclusion:

Tesla faces challenges from declining margins, competition, and regulatory uncertainties, but its long-term growth potential remains tied to its innovative ventures in EVs, AI, and autonomous driving. Investors should closely monitor production trends, market demand, and regulatory developments in 2025 and beyond.