Why Is Wall Street So Bearish on Tesla? There's 1 Key Reason.
Key Takeaways
Tesla's market cap is once again above $1 trillion, with shares closing in on new all-time highs.
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3 min read
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investment
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July 24, 2025
04:30 AM
The Motley Fool
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The re indicates that Tesla's market cap is once again above $1 trillion, with s closing in on new all-time highs
However, The average Wall Street price target for Tesla (TSLA 0. 19%) is currently $299 (noteworthy indeed)
In contrast, That implies a 10% downside potential over the next 12 months (remarkable data), given current economic conditions
Conversely, Typically, analysts predict that stock prices will rise in the future, considering recent developments
Moreover, What is making analysts so bearish, given current economic conditions
There's one obvious factor, in today's market environment
This's bad news for EV stocks Last year, many electric vehicle (EV) stocks saw their valuations dip due to lower-than-expected sales growth
In 2025, growth rates haven't been much better
Moreover, In fact, April saw a 4 (an important development). 4% decline in EV sales year over year -- a rare occurrence
Tesla has taken the brunt of this slowdown in recent quarters
Moreover, The company generated a lower total revenue last quarter than it did three years ago
Analysts, meanwhile, ject stagnating revenue for the year ahead
Competitors Rivian Automotive (RIVN -0. 74%) and Lucid Group (LCID -1
Meanwhile, 60%), meanwhile, are expected to grow between 5% and 75%
Data by YCharts (an important development), in today's financial world
Despite Wall Street's bearishness, Tesla's market cap is once again above $1 trillion, with s closing in on new all-time highs, given the current landscape
On the other hand, Why the disconnect (an important development)
It's important to note that not all analysts are bearish on Tesla stock
Dan Ives, for example, thinks that Tesla's robotaxi division could add $1 trillion in value by the end of 2026 (an important development)
That's a near doubling in Tesla's stock price over the next 18 months
Image source: Getty Images
Priced at 12, in this volatile climate. 2 times sales, Tesla stock still has a higher valuation than Rivian or Lucid, which trade at 2
However, 3 times sales, respectively
Market analysis shows only explanation is that the market disagrees with the average Wall Street analyst
Nevertheless, Ly, bullish investors remain unfazed by the sales slowdown and are instead looking ahead at massive growth opportunities Tesla's robotaxi launch
Additionally, Wall Street looks bearish on Tesla at first glance
Furthermore, And it is -- at least on average, considering recent developments
But plenty of analysts and everyday investors remain extremely bullish (an important development)
The Author I've had a deep passion for financial since childhood and will discuss almost any topic, so don't get me started
I have a Finance and Accounting degree from Bentley University and have worked for multiple mutual funds doing fundamental re
Furthermore, TMFRyanVanzo Ryan Vanzo has no position in any of the stocks mentioned
The Motley Fool has positions in and recommends Tesla, in light of current trends
What the re reveals is Motley Fool has a disclosure policy (noteworthy indeed).
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