Tesla Stock Falls 5% Amid Sales Decline Warnings

Tesla Stock Falls 5% Amid Sales Decline Warnings

In Summary

  • Tesla stock fell 5% Tuesday after a similar drop Monday
  • Analysts warn of declining sales and competition in China
  • Tesla’s China sales plummeted 49% as rivals introduced new tech
  • The stock is down 44% in 2024, the steepest decline in the S&P 500


Catenaa, Wednesday, March 19, 2025-Tesla shares fell another 5% Tuesday, continuing a steep downward trend as Wall Street analysts raised concerns about the electric vehicle maker’s global sales and competitive standing, particularly in China.1

The stock’s decline follows a 5% drop on Monday, extending a losing streak that could mark nine consecutive weeks of losses.

Analysts from RBC Capital Markets and Mizuho lowered their price targets for Tesla, citing intensified competition from Chinese EV makers, declining brand perception in the US and Europe, and geopolitical challenges. 

Market analysts reduced Tesla’s stock price target from $440 to $320, warning that Chinese manufacturers are poised to dominate the country’s driverless vehicle market.

Meanwhile, some analysts cut Tesla’s 2025 vehicle delivery estimate by over 20%, citing a sharp drop in sales across key markets.2

Tesla’s sales fell 49% in China, 76% in Germany, and 2% in the U.S. last month, while the broader EV market in these regions showed significant growth. 

Further pressure came from major announcements by Chinese rivals BYD and Zeekr, which introduced new technologies that could erode Tesla’s competitive edge.

RBC now expects Tesla’s market share in China to drop from 20% to 10%. 

However, analysts also said that despite these challenges, Tesla remained one of the most valuable automakers, though its stock has lost 44% in 2024, the worst decline among S&P 500 companies.

Sources
  1. forbes.com: https://www.forbes.com/sites/dereksaul/2025/03/18/tesla-stock-slides-another-6-as-more-firms-warn-of-musk-led-companys-sales-woes/[]
  2. https://www.forbes.com/sites/dereksaul/2025/03/18/tesla-stock-slides-another-6-as-more-firms-warn-of-musk-led-companys-sales-woes/[]
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