Is Tesla Stock's 22% Drop in 2025 a Buying Opportunity or Red Flag?

Analyst opinion on Tesla remains divided. Some on Wall Street argue that the stock is still expensive compared to peers, given the risks ahead. For example, Wells Fargo has set a price target of $130, suggesting the stock could fall another 50% from current levels. Their concerns include weaker demand, shrinking profit margins, high valuation, and doubts about Tesla’s ability to successfully launch low-cost models and autonomous vehicles.

Others take a more optimistic view, pointing to Tesla’s potential in artificial intelligence, robotaxis, robotics, and energy solutions. The company’s investments in Optimus humanoid robots and its energy storage division could open new avenues of growth in the future. Supporters argue that Tesla is not just a carmaker but a technology company with multiple disruptive projects in progress. For these bulls, the recent decline in share price represents a chance to buy into that vision at a relative discount.