Tesla stock (TSLA) nosedived more than 15% on Monday, marking its worst trading day since September 2020 and sending shares tumbling more than 50% from their all-time high of $479 recorded on Dec. 17, 2024.
The electric vehicle giant continues to struggle as weakening demand, declining deliveries, and political controversies surrounding CEO Elon Musk weigh on investor confidence. With Monday’s drop, Tesla has officially erased all of its post-election gains, reinforcing concerns about the company’s future trajectory in the increasingly competitive EV market.
Why Is Tesla Stock Dropping?
Lower Delivery Forecasts & Weak Demand
On Monday, UBS analysts slashed their price target on Tesla from $259 to $225, citing lower-than-expected delivery numbers for the first quarter. The firm now expects 367,000 deliveries, down from the previous estimate of 437,000, representing a 26% quarter-over-quarter drop and a 5% year-over-year decline.
Tesla’s Model 3 and Model Y sales are particularly concerning, with analysts pointing out that shorter delivery wait times in major markets suggest a significant drop in demand.
China Sales Plunge 49%
Adding to Tesla’s woes, new data shows that Tesla’s China shipments plunged 49% year-over-year in February 2025, hitting the lowest level in nearly three years. With China being Tesla’s second-largest market, this decline has further rattled investors.
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Political Controversy & Musk’s Influence
Tesla’s decline is also tied to CEO Elon Musk’s growing involvement in politics. As a key surrogate for Donald Trump’s 2024 campaign, Musk’s presence in Washington—particularly as head of the Department of Government Efficiency (DOGE)—has sparked public backlash and protests.
- Tesla car sales in Europe have declined, with some analysts attributing it to Musk’s close ties to Trump.
- Protests against Musk-led government layoffs have taken place at Tesla showrooms across the U.S.
- A January poll found that 53% of voters oppose Musk having a prominent role in the Trump administration, further dampening Tesla’s public perception.
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How Much Has Tesla Lost?
- Tesla stock price today: $159.80 (-15%)
- Market value lost: Over $100 billion
- YTD decline: More than 20% in March alone
With these losses, Tesla has now dropped more than 50% from its record high in December, and investors are increasingly questioning whether the stock can recover.
Wall Street Analysts Divided on Tesla’s Future
Despite the bearish outlook, some Tesla bulls remain optimistic about the company’s long-term prospects.
🚀 Bullish Calls from Top Analysts
- Wedbush analyst Dan Ives defended Tesla, calling the stock’s decline a “gut check moment for Tesla bulls” and maintaining a $550 price target.
- Morgan Stanley’s Adam Jonas reiterated Tesla as a top pick in the auto sector, predicting a rise to $430 per share as the company expands into artificial intelligence and robotics.
However, not all analysts share this optimism. Many believe that declining EV sales, increased competition. And Musk’s political distractions could keep Tesla stock under pressure for the foreseeable future.
What’s Next for Tesla?
Tesla is expected to report its first-quarter earnings on April 22. Which will be a crucial test for the company’s ability to rebound from its recent struggles. Investors will be closely watching:
- EV sales numbers and delivery figures
- China market performance
- Updates on Tesla’s AI and robotics expansion
- Musk’s political influence on the brand
Until then, Tesla stock remains in freefall. Leaving many investors to question whether it’s time to buy the dip or brace for further declines.
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