The loss of Tesla’s shares by 15% on Monday was equivalent to the worst trading day since March 2020 and continued its downward trend into 2025. It was an increasing concern on Wall Street, which at times has been linked to falling demand for electric cars. Elon Musk, the chief executive officer, is, however, quite nonchalant and says the company has a beautiful future.
Eventually, it will all be okay, says Musk in a post on X (formerly Twitter). The decline in Tesla market capitalization, which was preceded by some very recent negative analyst reports, has nevertheless given some concern to investors, even if he is optimistic about it.
Joseph Spak, UBS Group AG’s analyst, has made a severe cut in his delivery estimates for Tesla by only predicting 367,000 sales for the first quarter from the previous forecast. This has now reduced the sales forecast by 16%. Spak no longer anticipates annual sales at Tesla to grow through 2025. Instead, he predicted otherwise, forecasting a 5% decline. This directly contradicts the company’s own anticipations, which estimate recovery to growth.
On March 6, Ben Kallo, an analyst from Robert W. Baird & Co., cut delivery estimates for Tesla based on both demand concerns and production disruptions brought about by the impending Model Y refresh. Echoing Spak’s concerns, he added that relatively short delivery wait times of only two to four weeks indicated muted demand through Tesla’s website in China.
Tesla under fire
It’s on the political vault as well as in reputation terms because in Germany Tesla’s registration plummeted to more than 70% in the first two months of 2025. This is part of the backlash for what he called “the fiasco that is happening right now” against the participation of Musk in the highly-contested federative elections of the country. At the same time, Toyota’s competition against BMW Co., the country’s EV leader, is also pressuring Tesla. In fact, the Shanghai plant of this company saw a plunge of its vehicle shipments in February by 49% to just 30,688 units, the worst monthly performance for this factory since July 2022.
Tesla shares now have been down by 45 percent from the beginning of 2025, eliminating all the profits it had made due to the victory of Donald Trump in the U.S. presidential election last November. About a 15 percent drop on Monday was the largest one-day decline for Tesla stock since September 2020. This has increased speculations about the company’s outlook in the near future.
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