In a recent note to investors, Wells Fargo analyst Colin Langan has labeled Tesla, the electric vehicle (EV) maker, as a "growth company with no growth." Langan predicts a leveling off of sales in 2024 and a subsequent drop in 2025, adding pressure to Tesla's stock, which has already felt some strain in the past two years.

Despite dominating the U.S. market, Tesla is now facing competition from domestic companies in Asia and Europe. In response, the automaker is implementing various strategies to maintain its market share. This includes triggering demand by offering price reductions and sales incentive programs to encourage customers to purchase new vehicles.

However, according to Langan's note, Tesla's sales volumes increased by just 3 percent in the second half of last year compared to the first half, while prices were reduced by 5 percent. Additionally, the company's stock performance, as compared to its peers in the Bloomberg Magnificent 7 Price Return Index, has been deemed poor by Langan.

As a result, Wells Fargo has lowered its profit estimate for Tesla in 2024 to $2 per share from $2.40. This stands in contrast to the average expectation across Wall Street, which is $3.03 per share.

However, there are differing opinions on Tesla's future prospects. In a separate note to investors, analyst Dan Ives argues that the negative sentiment surrounding Tesla's stock is overblown. Ives believes that the company's position as an AI stock and an EV stock, rather than just an exclusive player in one category, will likely lead to a rebound in the future.

Tesla's stock performance and growth prospects continue to be closely watched by investors and analysts alike. The company's response to the challenges it faces in the competitive market will determine its position in the coming years.

Disclosure: Joey Klender, who authored the article, owns Tesla stock. For comments, concerns, or questions, Joey can be reached at joey@teslarati.com or on Twitter @KlenderJoey. News tips can be emailed to tips@teslarati.com.