Tesla (NASDAQ: TSLA) is in the midst of a severe correction, with shares falling nearly 13% last week. The post-election rally has faded, and the electric
Tesla (NASDAQ: TSLA) is in the midst of a severe correction, with shares falling nearly 13% last week. The post-election rally has faded, and the electric vehicle (EV) giant is now down over 40% year-to-date, trading at $230 at press time.
The downturn comes as declining sales, weaker-than-expected Q4 earnings, and sluggish vehicle deliveries weigh on investor confidence. CEO Elon Musks political stance has also sparked controversy, further fueling uncertainty.
Meanwhile, intensifying competition from both legacy automakers and emerging EV startups continues to pressure Teslas stock, erasing billions in market value.
Tesla one-week price chart. Source: FinboldAI predicts Teslas price trajectory
Amid this uncertainty, Finbolds AI-powered prediction tool has provided an updated outlook for Teslas trajectory leading up to March 31, 2025.
Despite the downturn, the AI model sees a potential rebound, forecasting an average price target of $365, a 52.34% increase from current levels.
Finbold AI TSLA stock price prediction. Source: Finbold
Among the projections, Gemini 1.5 Flash 002 is the most optimistic, forecasting Tesla to reach $375, a 56.51% gain, citing strong technical momentum as the key driver.
Meanwhile, GPT-4o aligns with the average forecast of $365 but highlights bearish pressure from a potential death cross, where the SMA50 crosses below the SMA200, signaling market caution. The model also warns that potential interest rate hikes could pose additional downside risks.
On the more cautious end, Grok 2 Vision expects Tesla to stabilize around $355, reflecting a 48.17% increase. While still bullish, the model points to short-term bearish momentum but acknowledges long-term bullish indicators that could support future growth.
Analyst take on Tesla
Teslas declining stock price has triggered mixed reactions from Wall Street analysts, with concerns over slowing demand and intensifying competition prompting Bank of America and Goldman Sachs to lower their price targets in early March.
The EV giants struggles have fueled bearish sentiment, yet not all analysts are convinced the downturn will persist.
Wedbush analyst Dan Ives remains a strong Tesla bull, standing by his Buy rating despite the ongoing decline. Tesla has now landed on Wedbush‘s ’Best Ideas List, with Ives reaffirming his bullish stance on the EV giant.
He downplayed concerns over Elon Musk‘s political influence, stating that Tesla is entering its most significant phase of innovation and technological advancement in the coming years. Ives calls this a ’gut-check moment for investors and maintains a $550 price target, implying over 100% upside from current levels.
Despite its stock struggles, Tesla continues to push forward with bold expansion plans. The company is set to launch its fully autonomous robotaxi in 2025, with test programs expected across multiple U.S. cities by the end of the year.
Meanwhile, its Optimus humanoid robotics project is advancing, with Musk hinting at potential commercial sales by 2026. Tesla is also eyeing a major push into the Indian market, with initial sales projected for Q3 2025.
That being said, the companys ability to navigate competition, macroeconomic challenges, and execution risks will be crucial in shaping its trajectory in the weeks ahead.
Disclaimer:
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