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Tesla’s stock continues to decline as Elon Musk faces criticism following a drop in sales.

Tesla's stock is falling as analysts reduce delivery projections, pointing to sluggish demand and increasing competition in crucial markets.
Tesla Stock Declines Amid Weak Sales and Market Concerns

Key Points:

  • Tesla’s stock fell nearly 5% on Monday, closing at $238 per share, continuing its downward trend despite a broader market recovery.
  • Mizuho analysts slashed Tesla’s price target from $515 to $430 and cut the 2025 vehicle delivery forecast by 22%, citing weakening demand.
  • Sales figures show sharp declines in major markets:
    • U.S.: Down 2% YoY, despite a 16% EV market growth.
    • China: Down 49%, while the sector expanded by 85%.
    • Germany: Down 76%, with the market growing 31%.
  • Tesla’s stock is down 41% in 2024, making it the second-worst performer in the S&P 500 this year.

Musk’s Political Ties and Tariff Challenges

  • Elon Musk’s increasing political involvement, particularly with Donald Trump, has raised concerns about Tesla’s global business strategy.
  • Tesla has lobbied for a phased tariff approach, arguing supply chain limitations, but faces uncertainty due to Trump’s unpredictable policies.
  • A CNN poll found that 53% of respondents have a negative view of Musk, reflecting his growing political and brand challenges.

Tesla’s Declining Brand Value and Wall Street Pressure

  • Analysts from Goldman Sachs, JPMorgan, and UBS have lowered their Tesla delivery forecasts.
  • JPMorgan highlights Tesla’s eroding brand perception, especially in Europe, where Musk’s political stance has alienated key markets.
  • Elon Musk’s net worth has dropped $130 billion from its December 2023 peak, now standing at $329 billion.

Tesla faces multiple headwinds, including weakening sales, increased competition, political uncertainty, and shifting consumer perception. While it remains a dominant EV player, investor confidence continues to waver, reflected in Tesla’s significant stock decline and Wall Street’s cautious outlook.

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