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moonkissedmusic.com – Tesla’s stock experienced a significant decline recently, dropping over 15% on Monday, March 10, 2025, to close at $222.15.
This marked its lowest level since late last year and erased all post-election gains.
Factors Contributing to the Decline
- Reduced Delivery Forecasts: UBS analyst Joseph Spak lowered his first-quarter delivery estimates for Tesla, predicting 367,000 vehicles, a 6% decrease from the previous year.
- Sales Challenges in Key Markets: Tesla has faced declining sales in Europe and China. In Europe, registrations dropped by nearly half in January 2025, with significant declines in countries like France, Germany, and the UK.
In China, February sales decreased notably sweetestpersonblog, partly due to the transition to the updated Model Y.
- Elon Musk’s Political Involvement: CEO Elon Musk’s political activities, including support for former President Donald Trump, have reportedly led to consumer protests and boycotts, potentially impacting sales.
Market Capitalization Impact
The recent stock decline has significantly affected Tesla’s market capitalization, reducing it by approximately $125 billion.
Since its peak in December 2024, Tesla’s market cap has decreased by nearly $800 billion.
Analyst Perspectives
Analysts are divided on Tesla’s outlook. J.P. Morgan’s Ryan Brinkman downgraded his delivery estimate and holds a bearish view with a $120 price target, citing consumer protests and boycotts. Conversely, Morgan Stanley’s Adam Jonas maintains a positive long-term outlook, anticipating significant contributions from self-driving taxis and AI advancements, with a bullish price target of $430.
Conclusion
Tesla’s recent stock decline underscores the challenges the company faces, including delivery forecast reductions, sales declines in key markets, and potential consumer backlash related to CEO Elon Musk’s political involvement. The company’s ability to address these issues will be crucial for its future performance.
