Wells Fargo has just reaffirmed on its bearish Tesla call, ignoring the stock's rally and as a reminder to investors that bears still persevere on Wall Street. Despite the underweight rating, the bank forecasts Tesla shares will collapse another 70% to $125 in the next year.

Wells Fargo's analyst commented that the grim prediction is driven by weak business fundamentals. They point to Tesla's struggles to prop up vehicle deliveries despite deep discounts, and they warn about fierce competition from Chinese EV players.

The analyst added that the potential to repeal the Inflation Reduction Act tax credits may impact a serious threat to Tesla's pricing power and U.S. market demand.

Also, Tesla's futuristic CyberCab and humanoid robot Optimus fail to impress Wells Fargo. These innovations have always been exciting, but the bank warns they are in development and are still incredibly expensive, even though they are operational in some form.

This gloomy projection is made when Tesla enthusiasts are still betting big on the company's long-term vision. Will Elon Musk's team twist the skeptics to prove wrong, or does Tesla head towards a big correction as predicted?

GF Score for Tesla is 78 per 100, highlights company's high financial strength and high revenue growth, but investors should take note that the profitability of Tesla is moderate, and the stock price is considered expensive.