The moves have Wall Street analysts, who were questioning the company's strategy after the bizarre launch of the Cybertruck in November, scrambling to change their price targets and forecasts.
"I wish I hadn't done it," Joe Osha, an analyst at JMP Securities, told Bloomberg Television about his decision to cut Tesla to the equivalent of a hold from a buy in early October. "As an analyst, whenever you end up in this not-very-good situation where you've missed a big move in a stock, there's always a temptation to just give in."
Still, he admitted, "I don't think that I'm doing my job if I tell people to buy a stock at 20 times" the company's earnings before interest, taxes, depreciation and amortization.
Still, the automaker has plenty of skeptics who wonder whether it can ever consistently deliver profits. Others are encouraging clients to cash in.
Ben Kallo, a Robert W. Baird & Co. analyst, downgraded Tesla stock this month to the equivalent of a hold rating.
"After several years at an outperform rating, which included contentious arguments with (evidently) high-conviction bears, we recommend profit taking," Kallo wrote this month, adding that he was "battle-worn" after a tough two years.