Tesla (TSLA) clearly still has one very enthusiastic supporter left on Wall Street.
Emphasis on very enthusiastic.
Shares of the Elon Musk-led EV maker fell nearly 2% to $231.71 on Thursday after Piper Sandler analyst Alexander Potter reiterated his Overweight rating. Potter set a new $450 price target, down from his previous $500 projection, still implying nearly 90% upside from current levels.
At close: March 19 at 4:00:01 PM EDT
“Yes, TSLA is still Overweight rated. The drama is nothing new (and neither is the volatility) — it’s just that the stakes are higher,” Potter wrote, as if sensitive to the inquisitive looks on clients’ faces with the uber-bullish call. “TSLA’s now back to its pre-election valuation. Remember: this isn’t the first time TSLA has doubled and subsequently gotten cut in half, and it likely won’t be the last. In our view, nothing has changed re: Tesla’s ability to remake the world’s transportation and energy markets.”
He did follow several other peers on the Street, however, by cutting his delivery forecast on Tesla for 2025. “Politics aren’t to blame” for Tesla’s weak sales trends right now, Potter said.
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To be sure, the bears have been in control of the wheel as it pertains to Tesla’s stock price for most of 2025.
Shares are down 35% in the past month and 41% year to date. It’s the worst-performing member of the closely watched “Magnificent Seven” complex.
There continue to be a lot of explanations for the unwinding of the Tesla bull trade.
The demand outlook remains weak, as Potter and other analysts have noted while cutting their delivery estimates. The latest sign of this comes from China, where Tesla is reportedly offering 0% APR on the Model Y to boost sales.
In February, Tesla sold just 26,677 vehicles in China, an 11.16% drop year over year and a 20% decline from January, according to the China Passenger Car Association. Meanwhile, Australia’s Electric Vehicle Council reported a 72% year-over-year drop in Tesla’s overall sales for the month
At the same time, Australia’s Electric Vehicle Council reported that Tesla’s overall sales fell 72% year over year in February.
In the US, prices on used Cybertrucks, Model 3s, Model Ss, Model Ys, and Model Xs continue to drop. Tesla is facing increased EV competition from General Motors (GM) and Ford (F), while some consumers are opting for hybrids.
Wall Street, more broadly, continues to sour on the stock.
Mizuho cut its delivery numbers on Tesla this week, citing changing geopolitics — a nod to Elon Musk’s involvement with the Trump administration. That involvement has thrust Tesla into a different type of limelight with Musk detractors allegedly vandalizing Tesla dealerships and charging stations across the country.
