TSLA Stock Has Plunged Over 25% From Its December Peak, And This Analyst Says It Has Not 'Bottomed' Yet: 'One More Move Down, Which Could Happen Over The…'

Some analysts, including the head of technical strategy at Fundstrat Mark Newton, are reportedly wary about investors buying Tesla Inc TSLA shares even after it fell from its record close on Dec. 17.

What Happened: "I don't think this stock has bottomed yet, and probably has one more move down, which could happen over the next one or two weeks," Newton said, reported Bloomberg. Newton sees a chance for the stock to tumble 12% below current levels.

Tesla rose after Donald Trump won the Presidential elections in November upon investor expectations of favorable regulations owing to the company CEO Elon Musk‘s proximity to the President. However, since the stock closed at $479.86 on Dec. 17, it hasn’t closed that high.

Meanwhile, Musk did not reiterate his 20-30% growth in delivery outlook for 2025 in January during the company’s fourth-quarter earnings call and concerns about EV demand are high across Europe, China, and California.

Musk, however, said in January that the company will start deploying robotaxis for ride-hailing in Austin in June. But according to Evercore ISIS analyst Chris McNally, that means there is not much to come out for the stock on the autonomous vehicle front until June.

Steve Sosnick, chief strategist at Interactive Brokers, told Bloomberg that the shares already have “an awful lot of growth” priced in. Any disappointment or puncturing of the faith in its growth will cause the stock to dip, he said.

Bullish Analyst Take: Tesla bull Dan Ives, in contrast, sees a lot of positive catalysts for the stock going forward including the company releasing new and more affordable vehicles in the first half of the year as promised in January and the launch of unsupervised vehicles in Austin in June.

“Tesla gearing up for a new mass market vehicle launch in 1H25, making major product developments around autonomous/Optimus across its global ecosystem, Austin unsupervised FSD launch set for June, and a host of other growth EV/battery catalysts on the horizon,” Ives said on Thursday.

Price Action: Tesla shares closed up 5.8% at $355.94 on Thursday and are up 1% in premarket trading. The stock is down 6.2% year-to-date but up 88.6% over the past year, according to data from Benzinga Pro. It has dropped more than 25% from its December 17 peak of $480.

Tesla has a consensus “buy” rating based on the ratings of 31 analysts tracked by Benzinga. The 3 most recent analyst ratings were released by Benchmark, GLJ Research, and Stifel, and between them, they have an average price target of $324.62 for the stock.

Check out more of Benzinga's Future Of Mobility coverage by following this link.

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