Why Is Wall Street So Bearish on Tesla? There's 1 Key Reason.
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Why Is Wall Street So Bearish on Tesla? There's 1 Key Reason.

Why This Matters

Tesla's market cap is once again above $1 trillion, with shares closing in on new all-time highs.

July 24, 2025
04:30 AM
3 min read
AI Enhanced

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. But not Tesla.

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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