Tesla’s stock is making headlines again, surging 7.6% on Tuesday, marking an 11.6% gain over just two days. This jump made Tesla the top-performing stock in the S&P 500, leaving investors wondering: is this the start of a comeback, or just a temporary rally?
While the stock’s sudden rise has excited investors, Wall Street analysts remain cautious. Guggenheim analyst Ronald Jewsikow isn’t convinced Tesla’s momentum will last. He has doubled down on his “sell” rating, slashing his price target to $170 – a steep drop from current levels. According to Jewsikow, Tesla’s biggest challenge is its delivery numbers. He predicts the company will deliver just 358,000 vehicles in the first quarter of 2025, significantly lower than the 430,000 Wall Street expected.
Jewsikow also pointed out another factor: Elon Musk’s growing political involvement. Tesla’s CEO has been vocal about his views, and some experts believe this could be affecting demand. Reports suggest fewer people are visiting Tesla stores, potentially due to Musk’s controversial public statements.
Adding to the political drama, former President Donald Trump recently announced his support for Musk and Tesla. Trump even hinted that he’s buying a Tesla himself. While some investors see this as a boost, others worry that Tesla’s brand is becoming too politically charged, which could impact future sales.
Tesla remains one of the most valuable companies
Despite its recent struggles, Tesla remains one of the most valuable companies in the world. However, its stock is still trading at a sky-high valuation, 89 times this year’s projected earnings. That’s more expensive than major tech giants like Apple and Microsoft. Even Nvidia, the leader in AI chips, trades at a much lower multiple, despite having significantly higher growth.
While Tesla is making moves in artificial intelligence and robotics, these areas haven’t yet started generating significant revenue. For now, its core business still relies on electric vehicle sales, which are facing increasing competition from other automakers.
So, what does this all mean for investors? Tesla’s stock may be rising, but experts warn that the road ahead could be bumpy. With concerns about deliveries, valuation, and political risks, some analysts say this surge might not last. Whether you’re a believer in Tesla’s long-term vision or wary of its short-term risks, one thing is clear – Tesla remains one of the most unpredictable stocks on the market.
