Wall Street analysts discuss Tesla Inc. (NASDAQ:TSLA)'s future. Bloomberg reported rising doubt about the electric vehicle (EV) mogul's ambitions on March 12.
Wells Fargo analyst Colin Langan lowered Tesla shares to a Sell recommendation due to growing doubts about its growth potential
He expected weak sales volume for Tesla this year and a drop in 2025 due to stagnant sales growth in its primary regions.
Langan called Elon Musk's company a "growth company with no growth," citing 3% sales volume growth in the second half of 2023 and a 5% price cut.
The Bloomberg Magnificent 7 Price Return Index average is 31, yet Tesla's stock trades at 55 times its anticipated earnings despite the fall
Tesla's sales slump highlights the industry's volatility in EV and tech startup investing
Regrowth is possible for industry leaders, even during periods of halted growth and extreme price changes.
For instance, Wedbush Securities analyst Dan Ives believes Tesla will recover with higher growth margins and sales volumes in the next quarters.