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Tesla stockhasnt performed well to start the year.
In fact, it was down by roughly 35% year-to-date as of mid-April.
And Wells Fargo analyst Colin Langan believes this is only the beginning.
Langan gaveTesla stockan underweight rating, saying shares could plunge by another 50%.
Below, well detail several factors the analyst noted that could result in Teslas stock losing value.
Musks political stance and the growing popularity of Chinese EVs could put more pressure on growth rates moving forward.
This development could even put pressure on Teslas stock valuation and result in more declines.
However, he sees anovervalued stock that presents a shorting opportunity.
Investors are paying for a lot of promises and hope.
Toyota, which is aprofitable globe brand, is trading on a P/E of 8 and pays a dividend.
Lower prices hurt profitability, and those price cuts were taking placebefore the tariffs.
More pressure from Chinese EV makers can lead to lower profit margins for Tesla vehicles.
But they arent the only game in town, as other automotive companies are manufacturing electric vehicles.
President Trump is likely to stay firm on tariffs, ensuring Tesla has less competition in the U.S.
However, Chinese EVs can bite deeper into Teslas Eurasian market share.
Not all U.S. policies are positioned to benefit Tesla, though.
The ride-hailing service has gotten more competitive, with four key players in the industry.
While robotaxis are still in their early stages, they could be quite lucrative for investors.
Bernie Schaeffer, Chairman and CEO atSchaeffers Investments, explained the high-risk, high-reward nature of this service.
Waymo is already operating in multiple U.S. cities and has forced Tesla to accelerate development.
Combine that with the potential of the Optimus vertical, and youre looking at a company with serious optionality.
The short-term outlook doesnt look good for Tesla.
However, long-term investors who see it as more than just an EV automaker may want tomonitor the stock.
Disclaimer: This article was written before Tesla disclosed its first-quarter results on Tue, April 22.
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