Tesla stock (TSLA) is now down 21% year-to-date, struggling in 2025 so far, thanks to several factors. Founder Elon Musk has played a part in the fall of Tesla: from his involvement in the Department of Government Efficiency (DOGE) to his public fallout with Donald Trump. The Tesla stock susceptibility is likely to be further exposed because recent research shows that the company is in a hazardous situation of relying on government assistance.
Indeed, JPMorgan analyst Ryan Brinkman has found out that EV subsidies are nearly 52 percent of current profits at Tesla and the disappearance of the EV tax credit could prove disastrous to the bottom line of the auto giant. This will leave Tesla in an absolutely weak position because the legislation proposed by Trump would eliminate over 50 percent of profits of the company. Tesla bulls had hoped that close relations between the Elon Musk and Trump camps would save these subsidies, but the feud has already worsened ties, and the Tesla stock valuation is showing its nervousness in the current state of the electric vehicle marketplace.
Wells Fargo Lowers Price Forecast for Tesla Stock
Another firm that’s gone bearish on Tesla (TSLA) stock is Wells Fargo. Analyst Colin Langan notes that Tesla’s fundamental numbers are coming in worse than expected. The bank is expecting second quarter deliveries to be down 21% compared to a year ago, with the firm’s 343,000 estimate approximately 17% below street consensus. This would be another down quarter of sales and deliveries, which Tesla has suffered from numerous times in the last two years.
Also Read: Tesla (TSLA) Stock Up This Month Following Musk Comments
“New Model Y appears weak given inventory building & promotions. There is also no update on the affordable model, the only driver of 2H [second half of the year] volumes,” Langan wrote in a note to clients. “Order px [pricing] is ~stable, though financing promos & inventory discounts continue. We expect lower margin q/q due to px.” Tesla stock fell 3.88% on Tuesday, with forecasts for the next quarterly earnings now lower.
The upcoming Robotaxi event could provide a catalyst for TSLA’s rebound, according to Elon Musk and numerous analysts. Tesla’s robotaxi rollout has been accelerated and is now set to begin on June 22, 2025, according to an announcement from the Tesla CEO. Upon a successful launch, the company’s stock could accelerate to new highs. CNN analysts forecast TSLA shares to remain around the $306 mark over the next 12 months on average.
