Tesla stock fell Monday, continuing its recent tumble, as the EV giant received a price target cut based on low "favorability ratings and "mixed" fourth-quarter results in late January.
Stifel analyst Stephen Gengaro on Monday dropped his Tesla stock price target to 474 from 492 while maintaining a buy rating on the shares. Gengaro cited Tesla's Q4 results, uncertainty caused by President Donald Trump Trump Administration, Chief Executive Elon Musk's political involvement with the Trump administration as reasons for the price target cut.
The firm wrote that "Tesla net favorability rating [is] nearing all-time lows," based on its in-house tracking of public opinion of potential Tesla vehicle buyers. Gengaro said this could hurt near-term sales and that the unfavorable view of the brand is likely due to Musk. However, the analyst added that Tesla positives include expectations of a lower priced vehicle due out in the first half of 2025 and possible Optimus humanoid robot production ramping this year.
TSLA fell to a fresh two-month low of 350.51 early Monday before paring those losses, falling 2.9% to 351.11 during market action. Tesla initially rallied after reporting fourth-quarter earnings late on Jan. 29 but has reversed lower.
Tesla sales have tumbled in Europe to start 2025, another sign that Musk's increasingly political statements are hurting the brand there as well as in the U.S. Meanwhile, it's possible the recent stock decline reflects an ongoing re-evaluation of Tesla's earnings report and conference call, as well as its near-term self-driving targets.
Following Q4 earnings, analyst 2025 profit estimates have been coming down. As of Feb. 10, Tesla's 2025 EPS is expected to come in at $2.94, down 11% from the $3.31 expectation prior to Q4 earnings, according to FactSet. Estimates for 2026 have come down significantly as well.
Tesla annual earnings are now not forecast to rise above the 2002 peak of $4.07 per share until 2027, according to FactSet.
Tesla Stock Performance
TSLA tumbled 10.6% last week. With Monday's decline, shares are nearly 30% below their traditional 488.54 record high from Dec. 18, according to MarketSurge charts.
Tesla stock has dropped since hitting resistance on Jan. 31 at a downward-sloping trendline. If TSLA stock rebounds from here the pattern would be a double-bottom base with a 439.74 buy point.
The relative strength line for Tesla stock is also at a two-month low.
The stock consolidated in January, pausing after a scorching hot fourth quarter where Tesla stock logged most of its 63% advance for 2024, especially after Trump's election win.
Tesla stock ranks third in the 35-stock IBD Auto Manufacturers industry group. The stock has an 86 Composite Rating out of a best-possible 99. Shares also have a 95 Relative Strength Rating and an 83 EPS Rating.
TSLA stock is on the IBD Leaderboard watchlist.
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