Wells Fargo has a negative outlook on Tesla, maintaining an 'Underweight' rating and predicting no immediate stock rebound. The bank anticipates a decrease in Tesla's vehicle deliveries in Europe, China, and the US, leading to a 25% earnings decline by 2025 due to lower volumes and reduced profit margins resulting from price cuts. According to Wells Fargo, Tesla investors may continue to face challenges, with the stock potentially declining by 53% to reach the bank's target price of $130. Analysts at Wells Fargo underscored the ongoing weak performance of Tesla shares, with a 32% drop year-to-date and a 44% decline since December. The bank is concerned about looming issues for Tesla, with disappointing vehicle delivery projections and concerns about declining earnings. Additionally, uncertainties exist regarding the release of a budget-friendly Tesla model, which may impact sales and profit margins if it diverts buyers from higher-priced Tesla vehicles.