Tesla's Stock Has Been Caught in a Tug-of-War Between Bulls and Bears

Tesla's stock has been caught in a tug-of-war between bulls and bears, as analysts issue wildly different price targets for the EV giant.

Tesla (NASDAQ:TSLA) stock has been caught in a tug-of-war between bulls and bears, as analysts issue wildly different price targets for the electric vehicle giant.

While JPMorgan (NYSE:JPM) warns of a potential 50% crash to $120 per share, and sees a key level that could trigger the downfall, renowned investor Jim Cramer remains bullish, forecasting a $500 price tag in 2025.

Moreover, new reports highlight a concerning trend in Tesla’s global sales, which saw significant declines in the first quarter, indicating a challenging short-term future for the company.

However, despite the bear case and short-term headwinds, long-term projections from technical analysis and investing platforms suggest a potential comeback for Tesla stock to higher levels later in 2023.

JPMorgan Tesla Price Target: 50% Crash to $120?

According to JPMorgan analysts, they have issued a scathing prediction, setting a Tesla price target of just $120 per share. This represents a staggering 50% crash from current levels, and it is triggered by what analysts see as a key level that spells doom for Tesla.

In a note to clients on Monday, JPMorgan warns that a breach below $200 for sustained periods could signal a continuation of the bear market in Tesla stock, ultimately leading to the anticipated price target of $120.

Their prediction is based on several bearish observations. Firstly, they highlight that despite previous resilience against bearish calls, Tesla is now at risk of reporting its worst quarterly deliveries in three years.

Additionally, JPMorgan points out that Tesla’s valuation multiple is still high compared to internal projections, and they see potential for more downside in the short term.

Is Tesla’s Global Sales Decline a Major Red Flag?

Sticking with the theme of pessimism, new data from the Center for Automotive Research (CAR) reveals a significant decline in Tesla’s global sales in the first quarter.

According to CAR's Global Production and Sales Monitor report, Tesla's sales dropped by 23.8% quarter-on-quarter, a striking downturn from the prior quarter’s performance.

This downturn is even more evident when considering the full-year scope. Compared to the first quarter of 2022, Tesla’s sales decreased by 30.6%, showcasing a sustained period of decreasing sales velocity.

The figures highlight the challenges faced by Tesla in maintaining its market position and the impact of external factors, such as macroeconomic shifts and regional market dynamics, on the electric vehicle giant’s performance.

If this trend continues, Tesla may need to cut prices further or innovate at an even faster rate to maintain its dominant position in the rapidly expanding electric vehicle market.

Jim Cramer’s Bullish Tesla Forecast: $500 in 2025?

In a stark contrast to JPMorgan’s bearish call, which sees Tesla stock crashing 50%, renowned investor Jim Cramer remains bullish on the electric vehicle giant.

Cramer remains optimistic about Tesla’s long-term prospects, and he recently revealed his 2025 price target for Tesla stock.

Despite a challenging start to the year for Tesla, with its stock down 49% from its all-time high, Cramer sees a major buying opportunity for patient investors with a 3-to-5-year time horizon.

According to Cramer, "If you can handle volatility and prefer investing in companies that are rapidly innovating and expanding in new markets, then you might want to consider buying more Tesla stock.”

CoinCodex Tesla Price Forecast: Volatility Before Recovery

At CoinCodex, our forecast aligns more with Jim Cramer’s long-term bullish outlook, although we anticipate a steeper dip before the recovery.

CoinCodex Tesla Price Forecast:

June 2023: $180

November 2023: $400

This forecast is less bearish than JPMorgan’s $120 target but suggests that Tesla could face more downside before rebounding later in the year.

This aligns with the short-term difficulties highlighted by JPMorgan and the new data from the Center for Automotive Research (CAR).

Earlier this year, both Stiller Global and InvestingPro, the Smart Investing Platform by Plus500, also issued bullish price predictions for Tesla stock.

Stiller Global set a 12-month price target of $380, while InvestingPro expressed an "Extreme Buy" recommendation with a fair value estimate ranging from $366.14 to $469.03 for the stock.

However, it's crucial to note that these are just predictions, and the actual price movement of Tesla stock will depend on a variety of factors, including macroeconomic conditions, industry trends, and changes in investor sentiment.

Plus500: Best CFD trading platform for global investors