Tesla Is Trimming Its Cybertruck Production. Should You Sell TSLA Stock as the Headwinds Keep Mounting?
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Valued at a market cap of $731 million, Tesla (TSLA) stock continues to underperform the broader market in 2025. After touching all-time highs in late 2024, shares of the electric vehicle manufacturer have pulled back significantly due to trade war escalations, slowing consumer demand, rising competition, and concerns over CEO Elon Musk’s proximity to President Donald Trump.
TSLA stock is down more than 50% from record levels and slumped over 5% on Monday, April 21 after investment bank Barclays slashed its Tesla price target to $275. Barclays cited deteriorating Tesla fundamentals and raised questions about the company’s ability to hit 2025 volume growth targets.
The downgrade comes as Musk's involvement with the Trump administration faces increasing scrutiny, with some analysts warning his political activities could harm Tesla’s brand image.
Moreover, Tesla has allegedly reduced Cybertruck production targets and reassigned workers from the program to Model Y lines since January, according to Business Insider. Multiple employees report production lines operating at a fraction of their previous capacity at the Texas Gigafactory.
The news comes amid reported disruptions to Tesla’s planned Cybertruck and semi-electric truck models, adding to its mounting challenges, including declining sales, increased Chinese competition, and changing consumer preferences.
What Is the Target Price for TSLA Stock?
Despite the ongoing pullback in TSLA stock, it trades at a lofty forward price-earnings multiple of 113.25x. Over the last three years, the EV stock has traded at a forward earnings multiple of 67.8 times. Notably, Wall Street expects Tesla to grow its EPS from $2.51 per share in 2025 to $9.42 per share in 2029, indicating a compounded annual growth rate of almost 40%.
While Tesla’s growth estimates are attractive, it still has to wrestle with macroeconomic and company-related headwinds.
Out of the 41 analysts covering Tesla stock, 16 recommend “Strong Buy,” three recommend “Moderate Buy,” 12 recommend “Hold,” and 10 recommend “Strong Sell.” The average target price for TSLA stock is $304.47, indicating upside potential of over 26% from current levels.
On the date of publication, Aditya Raghunath 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. For more information please view the Barchart Disclosure Policy here.