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‘It's Only Just Begun,' Says Investor About Tesla Stock

‘It's Only Just Begun,' Says Investor About Tesla Stock

Globe and Mail11-06-2025
There are many things to say about Elon Musk and Tesla, Inc. (NASDAQ:TSLA), but boring is certainly not one of them. Musk and his company are in the headlines seemingly every day, for better or for worse.
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Most recently, last week's very public, social media-fueled split between Musk and his previous pal President Donald J. Trump caused TSLA stock to fall precipitously, though it has clawed back some of these losses over the past few days.
This broke a largely positive trend for TSLA, which over the past month and a half had been floating upwards. Indeed, it was Musk's admission in the company's Q1 2025 earnings report towards the end of April – in which he shared that he would be cutting down on most of his DOGE-related duties to focus on his private sector ventures – which sparked the recent bull run.
All told, the company's share price has lost almost a quarter of its value year-to-date. One investor known by the pseudonym Cash Flow Venue thinks that the TSLA has farther to fall – and Musk bears a large chunk of the blame.
'The crash has just begun,' asserts the investor. 'I think Elon is a disaster for Tesla's brand and its global perception by customers.'
Cash Flow Venue further explains that Musk's strong support of Trump has alienated the majority of progressive voters. Unfortunately for Tesla, these seem to be the consumers most likely to purchase an EV.
Moreover, the slowing sales are not confined to the U.S. but are being felt throughout the global marketplace. Cash Flow Venue cites a litany of depressing figures from around the world for Tesla's EVs, including year-over-year sales decreases of 68% in Portugal, 67% in France, and ~54% in Sweden.
On top of that, Trump administration policies are not helping matters, notes the investor, pointing to the fairly straightforward connection between the prospective end of EV tax incentives and a decline in demand.
With so much going wrong for the company, Cash Flow Venue notes that TSLA's high valuation is therefore pretty 'counterintuitive.'
'Given high valuation multiples, declining sales, and mounting risks, I maintain a Strong Sell rating on TSLA stock,' sums up Cash Flow Venue. (To watch Cash Flow Venue's track record, click here)
On the other hand, Wall Street has decidedly mixed opinions about TSLA. With 14 Buys, 12 Holds, and 10 Sells, TSLA has a consensus Hold (i.e. Neutral) rating. Its 12-month average price target of $281.77 has a downside of ~9%. (See TSLA stock forecast)
To find good ideas for AI stocks trading at attractive valuations, visit TipRanks' Best Stocks to Buy, a tool that unites all of TipRanks' equity insights.
Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
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