HSBC Predicts Tesla Stock May Drop by 65%: Reasons Behind the Forecast

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Tesla Faces Potential Stock Drop Amid Analyst Concerns

Tesla’s stock (NASDAQ: TSLA) has appreciated by approximately 37% over the past year; however, HSBC’s lead analyst, Michael Tyndall, has labeled its shares as significantly overvalued. He has set a one-year price target of $131 per share, suggesting a potential decline of about 65% from the current trading price of around $373.

Concerns surrounding Tesla’s vehicle sales are mounting, especially as total deliveries fell 8.6% in 2025, and revenue declined roughly 3%. Analysts cite unfavorable international market conditions and an increasing preference for domestically produced EVs in regions like China and the European Union as key drivers affecting Tesla’s market position.

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