Weakness in Tesla’s core automotive business could add to pressure on the electric vehicle stock, according to Wells Fargo. “TSLA fundamentals of the core auto business continue to weaken,” analyst Colin Langan wrote in a Monday note to clients. “May global deliveries are down 23% [year over year]. While ‘order’ pricing on the website appears stable over the [last 12 months], aggressive financing promotions continue to act as price cuts. Risk to Q2 margin remains given lower leverage.” The bank reiterated an underweight rating on Tesla stock, alongside a $120 per price target. Wells Fargo’s forecast implies Tesla shares will drop 61% from Monday’s $308.58 close. TSLA YTD mountain Tesla stock in 2025. Langan also said potential tailwinds, such as Tesla’s work on autonomous driving, are no longer enough to offset the company’s weak automotive numbers. While investors are looking toward the company’s June 12 robotaxi launch in Austin, Texas , the overall picture for the Elon Musk-helmed EV company is less rosy. “Most investor attention is directed at the June 12th Austin Robotaxi deployment. We doubt the likely limited debut will be enough to overshadow the poor fundamentals,” Langan said. Tesla faces multiple headwinds this year and others that are a continuation from the prior year. Tesla had already faced slowing sales and steeper competition in China , but the additional challenge of President Donald Trump’s higher tariffs and the implication for vehicle supply chains remains unclear. Tesla stock has slumped more than 22% in 2025, and has lost nearly 10% in June alone. Pressure mounted in recent weeks as Musk attacked Trump’s tax cut legislation in Congress and Trump engaged in personal jabs, and the two traded social media posts against each another on X and Truth Social . The war of words followed Musk’s exit from the Trump administration, where he served as a “special government employee” overseeing the Department of Government Efficiency, or DOGE. The temperature between the two may have cooled in recent days, however, with neither saying much about the other.
