Why Some Tesla Bears Say the Stock Could Lose Nearly Half Its Value, Again

Tesla (TSLA) shares rose close to 4% Friday amid a broader market rebound, but still posted losses for the eighth week in a row, with some analysts expecting the stock to fall further.

The stock has given up roughly all its gains since the Nov. 5 election, and has lost nearly half its value from a Dec. 17 closing peak of $479.86. This week, analysts from Wells Fargo and JPMorgan lowered their price targets to $130 and $120, respectively, suggesting the stock could lose nearly half its value from Friday’s close at $249.98.

The new price targets from Wells Fargo and JPMorgan are particularly bearish, well below the average of analysts tracked by Visible Alpha at $366, which would imply a premium of almost 50% from Friday’s level.

Wells Fargo analysts said they “initially dismissed” worries political backlash to CEO Elon Musk’s involvement with the Trump administration would hurt the EV maker, but recent protests and reports of vandalism against Tesla vehicles have challenged that, as they “raise the stakes for potential buyers.” The analysts highlighted declining sales in the U.S., China, and in Europe.

On Friday, reports also emerged that Tesla was one of several automakers that raised concerns with the U.S. Trade Representative’s office about the Trump administration’s actions on tariffs. Letters from Tesla and other car companies reportedly said that the tariffs could lead to retaliation from other countries, which could hurt the U.S. auto industry.