April 1 - Wells Fargo is sticking to its pessimistic view of Tesla (TSLA, Financial), predicting the stock could drop more than 50%. Analyst Colin Langan expects slower delivery growth and price cuts to hurt Tesla's profits.
Langan pointed out that electric vehicle sales are slowing down in the U.S. and Europe while competition is heating up in China. He also warned that the expected cut in the $7.5K EV tax credit could be a tough blow for Tesla later this year.
Wells Fargo is also unsure about Tesla's plans for the Cybercab in Austin, Texas. Langan raised concerns about the lack of unsupervised testing and the company's reliance on vision-only technology for its autonomous vehicles.
He added that if Tesla doesn't have a working ride-hailing service by June, it could be seen as a big disappointment.
Wells Fargo set a price target of $130 for Tesla, down from its current price of $276, which indicates more than 50% downside over current levels.
