Wells Fargo Drops 3.99% on Tesla Pessimism

On April 3, 2025, Wells Fargo's stock experienced a significant drop of 3.99% in pre-market trading, reflecting a challenging outlook for the financial institution.

Wells Fargo has recently expressed concerns about Tesla's future performance, warning that the electric vehicle manufacturer could see a 50% drop in its stock value. This pessimistic outlook is based on several factors, including disappointing delivery numbers, earnings reports, and the delayed rollout of the Cybertruck. The bank's analysts, led by Colin Langan, have highlighted that Tesla's delivery growth is expected to decline, and price cuts aimed at boosting sales could negatively impact the company's profit margins.

Additionally, Wells Fargo has noted that the increasing competition from domestic Chinese brands and the potential reduction of electric vehicle tax incentives by the Biden administration could further dampen Tesla's market demand. The bank's analysts have also raised concerns about the safety of Tesla's Autopilot system and the repeated delays in the production of the Cybertruck, which could erode market confidence if not addressed by June.