Wells Fargo analyst Colin Langan has maintained their bearish stance on TSLA stock, giving a Sell rating on April 17.
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Colin Langan has given his Sell rating due to a combination of factors impacting Tesla’s financial outlook. The company’s Q1 earnings are expected to decline significantly, with a forecasted EPS of $0.34, which is below the consensus of $0.42. This anticipated drop is attributed to lower operating leverage resulting from weak delivery numbers, despite some positive effects from the refreshed Model Y pricing.
Additionally, Langan has lowered the full-year delivery forecast for 2025, citing a decrease in demand for Tesla’s vehicles, including the Model Y and Cybertruck. The absence of updates on the Model 2 further contributes to a bearish outlook. While there have been slight improvements in pricing for some models, these are not sufficient to offset the overall weak fundamentals. Consequently, Langan maintains a cautious stance on Tesla’s stock, reflected in the Sell rating.