Tesla fell nearly 5% to $238 per share on Monday, despite a market recovery.
After Wall Street experts warned of weakening sales, brand perception, and rising competition in major worldwide markets, the latest dip occurred.
Given declining demand, Mizuho analysts led by Vijay Rakesh lowered their Tesla price objective by $85 to $430 in a Sunday research. The company decreased its 2025 car delivery target from 2.3 million to 1.8 million, a 22% drop below the market average of 2 million.
Mizuho found Tesla’s sales fell in major markets last month:
The US EV market rose 16% while sales declined 2%.
China: EV sales rose 85% while sales fell 49%.
Germany: EV sales rose 31%, but Tesla sales fell 76%.
Analysts attribute Tesla’s sales troubles to declining brand awareness in the U.S. and Europe, geopolitical issues, and Chinese EV competition.
Tesla stock performance 2024
Tesla has the second-worst S&P 500 performance with 41% year-to-date losses. FactSet statistics showed it was the worst-performing S&P 500 stock worth $100 billion or more on Monday.
The general trend is negative, although Tesla stock is up 7% from last Monday, when it dropped 15%, its largest dip in 4.5 years. Tesla underperformed the market as the S&P 500 index rose 0.7% on Monday, touching a 10-day high and building on Friday’s 2.1% comeback.
Tesla faces problems beyond sales and competition, including expanding political ties and tariff concerns. Tesla’s global commercial plan is complicated by Elon Musk’s growing political participation, particularly his support for US President Donald Trump.
Tesla has suffered from Trump’s tariffs despite Musk’s close friendship. Company encouraged US lately.
Trade Representative to take a “phased approach” to tariffs, noting that some Tesla parts cannot be acquired domestically. Trump’s surprise tariff plan has targeted imports and EV supply chains, contradicting this desire.
Public opinion mirrors Tesla’s political and brand issues. Last week’s CNN survey found,
Musk is disliked by 53%.
His approval is 35%.
Neutral 11%.
Musk’s wealth drops.
Elon Musk is the world’s richest person, worth $329 billion. He lost about $130 billion from his top of $464 billion in December 2023, when Tesla stock was at $480 per share after the election.
Tesla facing Wall Street pressure.
Big banks keep pressuring Tesla’s shares. Along with Mizuho, Goldman Sachs, JPMorgan, and UBS all lowered their Tesla delivery predictions.
Tesla’s brand value has rapidly declined, notably in Europe, where Musk’s political views have alienated important customers, according to JPMorgan analysts.
