Tesla Stock: Shares Plunge Despite Divided Analyst Views

Tesla's stock is experiencing significant pressure, declining about 4% in pre-market trading after a remarkable post-election rally that had briefly doubled its value. The Swiss banking giant UBS has substantially reduced its delivery forecasts for Q1 2025 and lowered its price target from $259 to $225, maintaining a "Sell" rating. Analyst Joseph Spak warns of potential 30% downside risk to earnings consensus estimates. Additionally, the much-anticipated Cybertruck is reportedly underperforming in sales, raising investor concerns about Tesla's innovation capabilities. After reaching a market capitalization of $1.5 trillion in December, the company has since lost approximately 45% of its value, with shares closing at just $262.67 last Friday - nearly back to pre-Trump election levels.

Contrasting Analyst Perspectives

Not all financial experts share this pessimistic outlook. Wedbush Securities has added Tesla to its "Best Ideas" list, contending that the company stands at the threshold of its most significant innovation and technology cycle yet. A key catalyst expected before summer is the introduction of a more affordable model priced below $35,000, potentially reinvigorating global electric vehicle demand and returning Tesla to a growth trajectory. The market valuation of Tesla remains heavily weighted toward future technologies rather than its current electric vehicle business, with autonomous vehicles and humanoid robots accounting for most of its stock price despite representing only a fraction of current revenue.