After a sluggish 2023, TeslaTSLA

spooked investors by announcing slower growth for 2024, jeopardizing its rich valuation. And now, Wells Fargo forecasts that sales will continue to fall through 2025. This could cause a runaway problem forTSLA

, already down ~33% this year, making it the worst performer in the S&P 500 — as Wells Fargo warns of a further 30% decline in the stock.

• Tesla has aggressively slashed prices on two models by as much as 11% in the past year to increase demand, but this has only modestly boosted sales among drivers who are skeptical about electric vehicles (EVs).
• On top of this, the automaker has no near-term prospects for growth — it’s losing market share in China, and Evercore analysts don’t expect its next-gen budget EV until 2027.

Tesla’s European roadblocks: Tesla could also be forced to “meaningfully lower” its European deliveries this quarter after an environmental group allegedly set fire to an electrical tower at Tesla’s German gigafactory, amid controversy surrounding Tesla’s plan to clear forests for a factory expansion. Adding to the headaches: Tesla workers in Sweden have been on strike for months and are now blockading EV charging stations.