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.
