Banking giant Wells Fargo has made a bold prediction regarding the future of electric carmaker Tesla’s stock. According to a report by CNBC, Wells Fargo expects to see a significant drop in Tesla’s stock price in the near future.
In a note to clients, Wells Fargo automotive and mobility analyst Colin Langan expressed concerns about Tesla’s core auto business, stating that it continues to weaken. This decline in the auto business could potentially have a negative impact on the company’s stock performance.
The bank has given Tesla an underweight rating and set a price target of $120, suggesting that the company’s shares could plummet by 61% from their current price of $308.58. This bearish forecast comes at a time when investors are eagerly anticipating the launch of Tesla’s robotaxi service in Austin. These autonomous vehicles are set to revolutionize transportation by providing on-demand rides without the need for human drivers.
Despite the potential benefits of Tesla’s work on autonomous driving technology, Langan believes that these advancements may not be enough to offset the company’s weak automotive numbers. Tesla’s global deliveries have fallen by 23% year over year, with increased competition in China contributing to the decline. As a result, Tesla’s stock has already dropped by more than 22% in 2025, with a nearly 10% slump in June alone.
While investors may be focused on the excitement surrounding the robotaxi launch, Wells Fargo remains cautious about Tesla’s overall performance. The bank’s analysis highlights the importance of considering the company’s fundamentals, rather than getting caught up in short-term developments.
As Tesla faces challenges in the automotive industry, it will be interesting to see how the company navigates these obstacles and whether it can regain momentum in the market. Stay tuned for further updates on Tesla’s stock performance and industry developments.
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With potential risks and uncertainties ahead for Tesla, it’s essential to stay informed and make well-informed investment decisions. Keep an eye on Tesla’s stock performance and industry trends to stay ahead of the curve.
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