Tesla stock received a 15% price target cut right ahead of the EV giant's first-quarter earnings results, with a longtime Tesla bull proclaiming Sunday that Chief Executive Elon Musk's work in the Trump administration is a "code red situation" for Tesla. TSLA sank Monday.
Late last week, Barclays analysts lowered their Tesla stock price target by 15% to 275, down from the previous 325. The firm maintained an equal weight rating on the stock. The analysts wrote that Tesla faces questions on increasingly weaker fundamentals and that it will be increasingly difficult for Tesla to achieve unit volume growth in 2025.
As with many other analysts, Barclays' view is that Musk could change the perception of Tesla on on the earnings call, speaking to the planned June launch of the robotaxi. The "good narrative could outweigh weak fundamentals," the analysts wrote.
Meanwhile, Wedbush Securities analyst Dan Ives, a longtime Tesla bull, wrote on Sunday that Musk "needs to leave government" and be a full-time CEO for Tesla. Ives added that Musk on the Q1 earnings call must "lay out the timeline/hard facts" around the rollout of autonomous vehicles and robotics over the next 6-12 months. Ives is also looking for clearly answers around when the "new lower cost vehicle" will hit the production line.
"We also would expect Musk to address his role in the Trump Administration and will be asked about if he plans to stay in an advisory role for the White House," Ives said.
"We view this as a fork in the road time: if Musk leaves the White House there will be permanent brand damage... But Tesla will have its most important asset and strategic thinker back as full time CEO to drive the vision and the long term story will not be altered. If Musk chooses to stay with the Trump White House it could change the future of Tesla/brand damage will grow.... A huge week ahead for Musk, Tesla, and investors," Ives wrote.
TSLA fell as low 222.79 intraday, closing down 5.8% to 227.50 during Monday's stock market action. Shares ended last week down 4.3% to 241.37.
Tesla Earnings Due
Tesla earnings are on tap Tuesday late. Analysts now sees EPS down 9% to 41 cents a share, though more recent forecasts point to a further slide, according to FactSet. Revenue should rise about 1% to $21.34 billion, but the sharp consensus is for a small decline. As usual, the focus will be on the earnings call.
Late Friday, Reuters reported that Tesla will delay its upcoming "affordable" EV by at least three months. Tesla had said it planned production of a lower-cost vehicle by mid-year, but various reports suggested it would come in late 2025 or 2026. The latest report said production will start in the U.S., followed by China and Europe.
The Five Answers Tesla Investors Need During Earnings
The EV giant has not given any details about the EV, but multiple reports have said it'll be a stripped-down Model Y rather than a new form factor, like a hatchback.
Tesla Stock Action
Tesla stock fell 4.3% to 241.37 last week. The stock is down 51% from its 488.54 peak on Dec. 18. However, shares have held above its March lows of 214.25. Still, Tesla stock remains down 40% so far in 2025 and is one of the worst performers in the S&P 500.
Concerns about Tesla's growth and robotaxis as well as fears about Musk's focus and impact on Tesla's brand image have taken a toll on TSLA stock.
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Since Trump announced the 25% auto tariffs, the 32 stocks in the IBD Auto Manufacturers industry group collectively dropped around 16%. The group has declined 39% in 2025. That puts the industry at 101 out of the 197 sectors tracked by IBD, with No. 1 the strongest and 197 the weakest sector.
Tesla stock has a 21-day average true range of 8.97%. The ATR metric is available on IBD's MarketSurge charting tool. It gauges the characteristic breadth of a stock's behavior. Stocks that tend to make large jumps or dives in daily action, the kind that can trigger sell rules and shake investors out of a stock, have a high ATR. Stocks that tend to make more incremental moves have lower ATRs.
In the current market, IBD suggests stocks with ATRs of 3% or below.
Tesla stock has a 69 Composite Rating out of a best-possible 99. Shares also have a 62 Relative Strength Rating and an 84 EPS Rating.
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