<div id="readability-page-1">The average Wall Street price target for Tesla (TSLA 0.19%) is currently $299.56 per share. That implies a 10% downside potential over the next 12 months. Typically, analysts predict that stock prices will rise in the future. But not Tesla. What is making analysts so bearish? There's one obvious factor. <h2>This is bad news for EV stocks</h2> Last year, many electric vehicle (EV) stocks saw their valuations dip due to lower-than-expected sales growth. In 2025, growth rates haven't been much better. In fact, April saw a 4.4% decline in EV sales year over year -- a rare occurrence. Tesla has taken the brunt of this slowdown in recent quarters. The company generated a lower total revenue last quarter than it did three years ago. Analysts, meanwhile, project stagnating revenue for the year ahead. Competitors like Rivian Automotive (RIVN -0.74%) and Lucid Group (LCID -1.60%), meanwhile, are expected to grow between 5% and 75%. <img src="https://imageproxy.pbkrs.com/https://media.ycharts.com/charts/00d89b3cf9d3a9a2ad4d1dcca2ed2f80.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="720" height="575" original-src="https://imageproxy.pbkrs.com/https://media.ycharts.com/charts/00d89b3cf9d3a9a2ad4d1dcca2ed2f80.png"/> Data by YCharts. Despite Wall Street's bearishness, Tesla's market cap is once again above $1 trillion, with shares closing in on new all-time highs. Why the disconnect? It's important to note that not all analysts are bearish on Tesla stock. Dan Ives, for example, thinks that Tesla's robotaxi division could add $1 trillion in value by the end of 2026. That's a near doubling in Tesla's stock price over the next 18 months. <div><img src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84MjU1NTAvZ2V0dHlpbWFnZXMtMTMyOTY2NTA4Ni0xMjAweDY3NS0xMjg1NTRlLTEuanBnJnc9NzAw?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="700" height="393" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84MjU1NTAvZ2V0dHlpbWFnZXMtMTMyOTY2NTA4Ni0xMjAweDY3NS0xMjg1NTRlLTEuanBnJnc9NzAw"/>Image source: Getty Images. </div> Priced at 12.2 times sales, Tesla stock still has a higher valuation than Rivian or Lucid, which trade at 2.9 and 9.3 times sales, respectively. The only explanation is that the market disagrees with the average Wall Street analyst. Likely, bullish investors remain unfazed by the latest sales slowdown and are instead looking ahead at massive growth opportunities like Tesla's robotaxi launch. Wall Street looks bearish on Tesla at first glance. And it is -- at least on average. But plenty of analysts and everyday investors remain extremely bullish. </div>

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Wall Street's average price target for Tesla is $299.56, indicating a potential 10% downside. Analysts are bearish due to a decline in EV sales, with Tesla's revenue lower than three years ago and stagnating projections. Competitors like Rivian and Lucid are expected to grow. Despite this, Tesla's market cap exceeds $1 trillion, and some analysts, like Dan Ives, remain bullish, citing potential value from the robotaxi division. The market appears to disagree with the bearish sentiment, focusing on future growth opportunities.

- The average Wall Street price target for Tesla is $299.56 per share, indicating a potential 10% downside over the next year.  
- Analysts express concern over Tesla's stagnating revenue and declining EV sales, contrasting with competitors expected to grow.  
- Despite bearish sentiments, some analysts remain optimistic about Tesla's future, particularly regarding its robotaxi division, which could significantly increase its market value.

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