Tesla Faces Mounting Challenges as Sales Slump and Robotaxi Hype Fails to Impress

Wells Fargo analyst Colin Langan delivered a stark warning to Tesla investors this week, slashing the price target to $120 from $308.58 amid deteriorating fundamentals. The electric vehicle maker''s global deliveries plummeted 23% year-over-year in May, while hidden discounts masquerading as financing promotions erode profitability.

Despite the looming Robotaxi unveiling on June 12 in Austin, Texas, Langan remains skeptical. "We doubt the likely limited debut will be enough to overshadow the poor fundamentals," he noted. The autonomous driving initiative, championed by Elon Musk, appears insufficient to counterbalance weakening Core automotive operations.

Market sentiment reflects growing concerns. Tesla''s stealth price cuts and demand uncertainties create headwinds that even technological ambitions can''t offset. The projected price target implies billions evaporating from market capitalization, signaling turbulent times ahead for the EV pioneer.