Tesla’s Meme-Like Stock Surge Leaves Wall Street Feeling Wary

Tesla Inc.’s post-election surge, powered by Elon Musk’s full-throated support for Donald Trump, has added almost $250 billion to the carmaker’s value, a staggering sum that now has some on Wall Street urging caution.

Shares in the electric vehicle maker have soared 34% since Trump’s decisive win, leaving analysts’ price targets in the dust. The gap between Tesla’s share price and the average analyst target compiled by Bloomberg suggests 30% downside, and is at its widest since the post-pandemic tech stock mania of late 2021.