More names on Wall Street are souring on Tesla as the electric vehicle maker’s losses continue to pile. UBS and Redburn Atlantic reiterated their sell ratings on Tesla ahead of the company’s April delivery report and first-quarter results, citing sluggish Model Y delivery forecasts and a lack of near-term growth catalysts. UBS slashed its price target by $24 to $225, which suggests 14% potential downside ahead for Tesla, while Redburn’s significantly more bearish $160 price target suggests the stock can fall more than 39%. “We foresee another year of stalled volumes without an imminent new vehicle launch,” Redburn analyst Adrian Yanoshik wrote. “Sluggish registration data to-date may flag a lingering demand challenge. Meanwhile, we expect cash flows to strain under higher inventories into refreshed Model Y deliveries, which began in March. Possible U.S. tariffs on imports from Mexico adds a cost overhang.” Tesla shares declined nearly 9% on Monday, bringing its year-to-date plunge to more than 40%. If trends don’t reverse, the stock could head for an eighth consecutive week of declines after giving up its post-election gains , its longest losing streak in 15 years as a publicly traded company. Several firms last week, including Bank of America, Baird and Goldman Sachs, also lowered their price targets on Tesla last week. TSLA 1Y mountain Tesla stock. Tesla is facing stiff competition from autonomous carmakers in China, concerns over falling vehicle sales in the U.S. and in Europe, and protests over Musk’s political activity. It’s added doubt on the Tesla bull case, which has long relied on the vision of being a company that’s more than just an automaker. Visions of AI-powered robotaxis and humanoid robots are still a far off reality, analysts have said, however. “While the long-term story at TSLA has shifted to AI (robo-taxis and humanoid robots) and progress there continues, we believe these are longer dated opportunities that the premium multiple already (more than) considers,” UBS analyst Joseph Spak said, adding that the stock is currently trading at a valuation that is “too high.” Spak lowered his 2025 delivery forecast to incorporate softer demand for Tesla’s Model 3 and Model Y in key markets. He expects some auto gross margin recovery in the second quarter, but says pricing pressures on older Model Ys could still weigh on Tesla’s results. Plans of the company’s “lower-cost” vehicle would likely be a lower margin venture, he added. Of the 54 analyst ratings on Tesla, three rate the stock a sell, nine give it an underperform and 16 have hold ratings, according to LSEG. Twenty-six maintain either a buy or a strong buy rating, it said.
