Tesla Inc. (NASDAQ: TSLA) has had an incredible stock run, climbing by more than 68% in the last year and an incredible 1,139% in the last five years as of January 9, 2025. The electric car giant remains the largest auto manufacturer worldwide by market cap—at $1.24 trillion, it is about five times as large as the next-biggest automotive company.
Despite this massive success, there are plenty of reasons investors may have recently soured on Tesla. A growing number of Wall Street analysts are rating TSLA either Sell or Hold on the calculation that shares have become overvalued; the consensus price target of around $293 is more than 25% below current levels as of January 9. 2024 deliveries of Tesla vehicles fell by more than 2% year-over-year, the first time this figure has dropped in that timeframe and a significant concern for a company that has previously aimed for a 50% annual deliveries growth rate. And high-profile incidents related to the company—a New Year's Day explosion of a Cybertruck in Las Vegas in a possible act of terrorism and the increasingly polarizing political behavior of CEO Elon Musk—may also be driving investors elsewhere.
