Tesla(US:TSLA) The Motley Fool·2025-06-11 08:40Core Viewpoint - Tesla's stock has declined 22% year to date, with analysts predicting further declines due to various business and political challenges [1] Group 1: Market Performance - The average target price among 55 analysts for Tesla is $289 per share, indicating an 8% downside from the current price of $316 [1] - Tesla has lost significant market share, with a 10 percentage point decline in the U.S. and Europe, and a 3 percentage point decline in China during Q1 [5] - In April, Tesla continued to struggle, losing 6 percentage points of market share in the U.S., 5 points in Europe, and 3 points in China [7] Group 2: Leadership and Political Influence - The relationship between CEO Elon Musk and President Trump has deteriorated, leading to negative implications for Tesla's brand and market performance [2][9] - Musk's political involvement and criticism of the Trump administration have reportedly alienated potential buyers and damaged the Tesla brand [9] Group 3: Analyst Sentiment and Forecasts - Analysts from Baird and Argus Research have downgraded Tesla shares to "hold," citing concerns over the ongoing feud between Musk and Trump, as well as the expiration of EV credits [10] - Earnings forecasts have been revised downwards, with a consensus estimate for 2025 cut by 29%, and a projected 20% decline in earnings for this year [10] Group 4: Future Outlook - Despite current struggles, Musk remains optimistic about Tesla's potential, particularly in autonomous driving and humanoid robots, suggesting that the investment thesis for believers in his vision remains unchanged [11]