Tesla’s Stock (TSLA) Looks To Stem Losses as Musk Rallies Troops

Tesla's stock (NASDAQ: TSLA) is holding green today, up 1.95% as news that Elon Musk has sought to rally the firm's employees came to light.

Musk's close association with the Trump administration and his role as head of the Department of Government Efficiency have raised concerns. Some analysts believe this is hurting Tesla's brand image and sales, particularly in the US and Europe.

The stock price has fallen around 50% from its peak of $488 in mid-December 2024, with the pullback setting off alarms amongst holders. Down 36.5% year-to-date, TSLA has been one of the worst performers in the S&P 500.

Musk Rallies Tesla Troops Amid Protests

CEO Elon Musk held an all-hands meeting in a bid to boost confidence internally as the company faces global protests and heightened scrutiny.

Daniel Ives, an analyst from Wedbush, commended Elon Musk for his proactive approach amid Tesla's current troubles. The impromptu all-hands meeting was swiftly organized and broadcast live, an action that Ives views as a significant and necessary step forward in these turbulent times.

Despite the evident challenges, including protests at Tesla dealerships and instances of vandalism against Tesla vehicles, Musk's decision to directly address the company's workforce has been met with praise. Wedbush upholds an ‘Outperform' rating on Tesla's stock, maintaining a price target of $550, and underlines this event as a critical juncture for Musk to reinforce his leadership both to Tesla employees and investors.

Recent Financials & Price Target Shifts

Tesla's 2024 financial results showed weak growth, with revenue up only 1% and net income falling 53% year-over-year. Vehicle deliveries also declined by 1% despite price cuts.

The electric vehicle (EV) market is becoming increasingly competitive. Chinese EV makers, such as BYD and Zeekr, are making significant advancements, including the unveiling of ultra-fast charging technology.

Several Wall Street analysts have lowered their price targets and delivery forecasts for Tesla. Concerns include a worsening outlook for Tesla's self-driving technology and robotaxi rollout, especially in China, as well as intensifying competition.

Sales in several European countries, such as Germany, Norway, Denmark, Sweden and France, have seen a decline.

Tesla executives and board members have sold over $100 million in stock since early February.

• RBC Capital – $320 ↓ from $440
• Mizuho – $430 ↓ from $515
• Wells Fargo – $130 ↓ from $135

Despite the current challenges, some analysts remain optimistic about Tesla's long-term potential, citing the company's efforts to reduce production costs and its positioning in megatrends like autonomous driving and robotaxis.

Tesla's Full Self Driving software has a lot of miles logged. Delays in new product launches, such as the updated Model Y, have been cited as a negative factor, suggesting that their eventual release could boost the stock.