Why Is Wall Street So Bearish on Tesla? There's 1 Key Reason.

Group 1: Tesla's Market Performance - Tesla's market cap has surpassed $1 trillion again, with shares approaching new all-time highs [1][5] - The average Wall Street price target for Tesla is $299.56 per share, indicating a 10% downside potential over the next 12 months [1] - Tesla stock is priced at 12.2 times sales, which is higher than competitors Rivian and Lucid, trading at 2.9 and 9.3 times sales respectively [7] Group 2: Analyst Sentiment and Sales Growth - Analysts are generally bearish on Tesla due to stagnating revenue projections and a decline in EV sales, with a 4.4% year-over-year drop in April [2][3] - Despite the bearish outlook, some analysts, like Dan Ives, believe Tesla's robotaxi division could significantly increase the company's value, potentially doubling the stock price by the end of 2026 [5][8] - Competitors such as Rivian and Lucid are expected to grow between 5% and 75%, contrasting with Tesla's projected stagnation [3]