Wells Fargo is throwing in the towel on Tesla as headwinds for the Elon Musk-led company mount. Analyst Colin Langan downgraded the electric vehicle maker to underweight from equal weight. He also cut his price target to $125 from $200. The new forecast implies downside of 29.5% from Tuesday’s close. “We see downside risk to volume as price cuts are having a diminishing impact. We see headwinds from disappointing deliveries & more price cuts, which likely drive negative EPS revisions,” Langan wrote. “TSLA’s growth in core markets has moderated with EU & China flattish in the [last 12 months] & the US down since Q2. More concerning, the effect of price cuts are moderating with 2H volume up only 3% [half over half] despite pricing that’s down 5% h/h,” he added. “We expect volumes to be flat in 2024 & down in 2025. In the wake of [price] cuts are lower lease residuals, disgruntled customers & the possible loss of the luxury brand premium.” Tesla shares have struggled in 2024, losing nearly 30%, as demand for electric vehicles wanes. Ford Motor last month said it was reassessing its electric vehicle plans , with CEO Jim Farley noting widespread adoption won’t happen until costs are more aligned with gas-powered models. Late last year, General Motors and Honda scrapped the development of sub-$30,000 vehicles. TSLA YTD mountain TSLA year to date Wells Fargo’s Langan also laid out his bear case on Tesla, which would take the stock all the way down to $44 per share. That target implies downside of 75% over the next 12 months.