Tesla, Inc. (TSLA.US) Stock Price Trapped in Bull vs. Bear Battle! Wall Street Giants Predict Polarization with either a Sharp Increase or Halving of the Stock Price?

date
27/03/2025
avatar
GMT Eight
With the sharp drop and subsequent rebound in the stock price of Tesla, Inc. (TSLA.US), analysts are once again divided on its future prospects. HSBC has lowered its target price for Tesla, Inc. to $130, suggesting a potential drop of over 50% from the current stock price, as the bank believes that the electric car giant is facing challenges that may not be resolved in the short term. Analyst Michael Tyndall wrote, "The current sales slump has been brewing well before the recent brand crisis." His team's analysis indicates that Tesla, Inc.'s older models in the Chinese market have lost competitiveness due to outdated driving assistance technology, while damaged brand reputation in the European market also poses challenges. Tyndall warned, "Tesla, Inc. has consistently gone against industry norms (such as refusing to lower prices or make regular updates), and while this strategy has had limited impact so far, the negative effects may accelerate with increased competition and declining brand value." Regarding the market's discussion on the Robotaxi business opportunity, Tyndall believes that the realization period is too long to salvage the current stock price. He reminds investors of Tesla, Inc.'s history of product delivery delays and the increasing threat of industry competition. In contrast, Wedbush Securities analyst Dan Ives maintains an "outperform" rating and a target price of $550 for Tesla, Inc. ahead of the potentially weak first-quarter delivery data release. He believes that despite recent challenges, Tesla, Inc.'s investments in cutting-edge technologies such as autonomous driving, FSD, Siasun Robot & Automation, are paving the way for unprecedented bright prospects. He wrote, "Over the past decade, we have witnessed several key turning points for Tesla, Inc., and the current moment is crucial as Musk leads the company into a new future, despite challenges ahead." According to data from Seeking Alpha platform, analyst opinions are divided in recent reports - four out of five recent reports took a bearish stance, but overall market sentiment for Tesla, Inc. remains at "hold" based on 65 ratings.

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