Is Tesla Stock a Sell? An Analyst Predicts 85% Downside

Is Tesla Stock a Sell?

When everyone else is selling Tesla stock, should you buy it instead? 2024 has not been kind to Tesla (NASDAQ: TSLA) stock. Since the year began, a combination of weak demand for electric cars generally, combined with price cuts by Tesla in particular (designed to fix the weak demand problem), have cost Tesla more than one-third of its market capitalization.

Analyst Predicts 85% Downside

• On Tuesday, Tesla analyst Gordon Johnson of GLJ Research set a new, lower price target of just $22.86 on Tesla stock -- currently the lowest price target on Wall Street.
• Johnson forecasts an 85% downside over the next 12 months.

Make no mistake: Tesla's in for a rough year. Most analysts agree that last year's $15 billion in net profit will dwindle to less than $9 billion in 2024. But most analysts also forecast Tesla's profits to triple (to $25.8 billion) by 2028 as Tesla finds new directions to grow.