Tesla Faces Widening Analyst Divide: Bulls and Bears Clash

Several institutions have recently issued sharply divergent ratings on Tesla. Gordon Johnson of GLJ Research, a long-time bear, slightly raised his price target to $25.28 but maintained a "Sell" rating, arguing that the current share price is severely overvalued due to weak demand and Tesla’s reliance on regulatory credit sales for profitability. In contrast, New Street Research raised its price target from $520 to $600, citing Tesla's widening lead in vision-only autonomous driving technology. Wedbush and Deepwater Asset Management noted that although Tesla’s Q4 2025 deliveries declined 16% year-over-year, underlying demand appears to be stabilizing once adjusted for the pull-forward effect caused by the expiration of U.S. electric vehicle tax credits. Additionally, Tesla deployed 46.7 GWh of energy storage capacity in 2025, marking a new growth driver. Significant disagreement remains in the market regarding Tesla’s valuation, progress in autonomous driving, and the sustainability of vehicle demand.