2017 was a rocky year for Tesla (NASDAQ:TSLA). In the past three months, Tesla’s stock has underperformed compared to most other automakers, and the company saw its biggest quarterly loss in 3Q17. Added to that were the issues Tesla was having with its Model 3 production. Looking at it all together, analysts have started doubted whether Tesla will be able to pull back by 2018.
JPMorgan Chase (NYSE:JPM) analyst Ryan Brinkman expects Tesla stock fall approximately 40% as of December 4, from $305.20 to $185, and that it won’t get much better for the company in 2018. Competition in the electric vehicle sector will increase, coming from mainstream automakers. This is expected to do further harm to Tesla’s place in the market.
Morgan Stanley (NYSE:MS) analyst Adam Jones is more optimistic, believing that Tesla will be able to resolve its ongoing Model 3 production issues soon and that Tesla stock could reach $400 over the next few months. However, he too expects that Tesla stock may turn negative in the latter part of 2018, resulting from the higher competition over the electric vehicle.
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