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Tesla (TSLA) shares remain in focus on Wednesday following reports the electric vehicle company is seeing significantly weaker initial demand than many had expected in India.
According to Bloomberg, the automaker has received orders for just 600 cars since its launch in Asia’s third-largest economy in mid-July.
Tesla stock remains a disappointment for those who initiated a position in it in early 2025. At the time of writing, the EV stock is down over 20% versus its year-to-date high in January.
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Reports of muted demand in India is concerning for TSLA stock because it confirms the EV maker is indeed struggling to win share from rivals in key markets.
Tesla expects its artificial intelligence (AI)-enabled initiatives like robotaxi services to drive future growth. However, such offerings sure could take time to scale.
In the near term, the aforementioned weakness in the company’s core electric vehicle segment may continue to weigh on its stock price.
Last week, the European Automobile Manufacturers Association (ACEA) also revealed a startling 40% year-over-year decline in Tesla’s regional sales in July.
Tesla has failed to meet expectations this year mostly because the Nasdaq-listed firm is grappling with a global sales decline, prompting a more cautious stance among Wall Street analysts.
“TSLA is losing market share to competitors, which are expanding their BEV offerings,” said John Murphy, a senior Bank of America analyst in his latest research note.
According to him, investors should tread with caution on Tesla shares also because the automaker meaningfully relies on China for batteries, and so, the impact of tariffs on the EV stock will likely be significant.
BofA maintains its “Neutral” rating and $341 price target on TSLA stock, which no longer indicates material upside from current levels.
Note that BofA is actually among the more constructive Wall Street firms on Tesla stock.
While the consensus rating on TSLA shares also currently sits at “Hold,” the mean target of roughly $300 suggests potential downside of roughly 10% from here.
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On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com
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