Tesla’s stock took a nosedive on Monday, shedding 15% and marking its worst trading day in over four years. The brutal sell-off extends the company’s rough 2025 trajectory, fueling investor anxiety over dwindling demand for electric vehicles. Despite the turbulence, CEO Elon Musk remains defiant, insisting the company’s long-term outlook remains intact.
Wall Street Grows Wary of Tesla’s Future
Investors have been on edge for months, but Monday’s steep drop further exposed the growing skepticism surrounding Tesla’s performance. UBS Group AG’s Joseph Spak slashed his Tesla delivery forecast, projecting only 367,000 vehicles sold in Q1—a sharp 16% cut from his earlier estimate. Worse yet, Spak now expects Tesla’s sales to shrink by 5% in 2025, contradicting the company’s own guidance of renewed growth.
Other analysts aren’t any more optimistic. Robert W. Baird & Co.’s Ben Kallo lowered his Tesla delivery expectations last week, citing weak demand and potential disruptions caused by the anticipated Model Y refresh. Adding to the unease, Tesla’s China website currently reflects delivery wait times of just two to four weeks, a signal that demand may be tapering off in the key Asian market.
Global Headwinds Compound Tesla’s Woes
Tesla’s troubles are not confined to the U.S. In Germany, vehicle registrations for the EV giant plummeted by 70% in the first two months of 2025. This steep decline has been linked to political controversy surrounding Musk’s involvement in the country’s tense federal elections. Meanwhile, China—Tesla’s second-largest market—has been a battlefield, with domestic powerhouse BYD tightening its grip on EV sales.
Shanghai’s Tesla factory, once a cornerstone of the company’s global expansion, reported a 49% plunge in vehicle shipments in February. The plant’s output fell to just 30,688 units, marking its weakest monthly performance since July 2022.
Market Reaction: A Brutal Start to 2025
With Tesla shares now down 45% year-to-date, the stock has erased all gains made since Donald Trump’s election victory in November. Monday’s 15% plunge was the steepest single-day decline since September 2020, underscoring the fragility of investor confidence.
Musk, however, is unfazed. “It will be fine long-term,” he posted on X (formerly Twitter), attempting to reassure rattled shareholders. But whether the market shares his optimism remains to be seen.
