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Banking giant Wells Fargo reportedly expects to see a massive price drop in the electric carmaker Tesla’s (TSLA) stock.
CNBC reports that in a note to clients, Wells Fargo automotive and mobility analyst Colin Langan says that Tesla’s core auto business continues to weaken, which could weigh down on the company’s stock.
“While ‘order’ pricing on the website appears stable over the [last 12 months], aggressive financing promotions continue to act as price cuts. Risk to Q2 margin remains given lower leverage.”
The bank is giving Tesla an underweight rating and a $120 price target, which means that the company’s shares could drop by 61% from Monday’s closing price of $308.58.
The bank’s bearish forecast comes even as investors anticipate the company’s robotaxi launch in Austin today. The vehicles are set to provide on-demand transportation without human drivers.
Lanang says that potential tailwinds, including Tesla’s work on autonomous driving, are not enough to offset weak automotive numbers.
“Most investor attention is directed at the June 12th Austin Robotaxi deployment. We doubt the likely limited debut will be enough to overshadow the poor fundamentals.”
Tesla’s global deliveries are down 23% year over year amid steeper competition in China. TSLA has already dropped by more than 22% in 2025. In June alone, the stock slumped by nearly 10%.
