There are “no quick fixes” to Tesla’s problems, according to HSBC. Analyst Michael Tyndall reduced his price target on shares by $35 to $130. His new forecast suggests 52.2% downside potential for the stock from Wednesday’s close. “The seeds for the current sales weakness pre-date the recent brand issues,” Tyndall, who has a reduce rating on the stock, wrote in a note to clients on Thursday. Tesla’s aging products with limited driving assistance technology have pressured the company in the China market, according to Tyndall. Meanwhile, the electric vehicle maker has struggled with European fleet buyers, which constitute 60% of the new car market, per the analyst. “Tesla eschews many of the industry norms (holding list prices firm, making regular facelifts and model renewals) and has to date seen only minimal impact, but tougher competition and brand erosion is likely to see the impact of its strategy hurt more,” said Tyndall. Tesla’s Robotaxi opportunity too far away in the future, Tyndall added. He cited a crowd-sourced data report from earlier in March indicating progress on Tesla’s autonomous vehicle technology is “slow or stagnating.” “Delays have been a constant theme at Tesla, whereas the competitive threats continue to grow. We see a longer and less certain timeline than the current valuation reflects,” said Tyndall. Despite the stock’s 9.3% jump this week, it’s still down more than 32% in 2025. TSLA YTD mountain TSLA year to date Analysts are split on the stock. Of the 54 who cover it, 26 have a buy or strong buy rating, according to LSEG. Another 16 rate the stock as a hold, while 12 overs have an underperform or sell rating. Get Your Ticket to Pro LIVE Join us at the New York Stock Exchange! Uncertain markets? Gain an edge with CNBC Pro LIVE , an exclusive, inaugural event at the historic New York Stock Exchange. In today’s dynamic financial landscape, access to expert insights is paramount. As a CNBC Pro subscriber, we invite you to join us for our first exclusive, in-person CNBC Pro LIVE event at the iconic NYSE on Thursday, June 12. Join interactive Pro clinics led by our Pros Carter Worth, Dan Niles, and Dan Ives, with a special edition of Pro Talks with Tom Lee. You’ll also get the opportunity to network with CNBC experts, talent and other Pro subscribers during an exciting cocktail hour on the legendary trading floor. Tickets are limited!
