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Tesla’s stock continued its downward trend on Monday, declining nearly 5% to $238 per share, despite a broader market recovery. The latest drop follows a series of warnings from Wall Street analysts about weakening sales and brand perception, as well as increasing competition in key global markets. In a new report issued Sunday, Mizuho analysts, led by Vijay Rakesh, revised their Tesla price target downward by $85 to $430, citing deteriorating demand. The firm also cut its 2025 vehicle delivery forecast from 2.3 million to 1.8 million, a 22% reduction that falls below the broader market consensus of 2 million deliveries. According to Mizuho’s analysis, Tesla’s sales declined significantly in major markets last month: United States: Sales fell 2% year-over-year, while the overall EV market grew by 16%. China: Sales plummeted 49%, while China’s EV sector expanded by 85%. Germany: Tesla’s sales dropped 76%, even as Germany’s EV market grew by 31%. Analysts attribute Tesla’s sales struggles to worsening brand perception in the U.S. and Europe, ongoing geopolitical tensions, and growing competition from Chinese EV manufacturers. Tesla’s stock performance in 2024 Tesla’s year-to-date losses now stand at 41%, making it the second-worst performing stock among all S&P 500-listed companies. On Monday, it was also the worst-performing stock among S&P 500 firms valued at $100 billion or more, according to FactSet data. While Tesla stock remains up 7% from last Monday, when it suffered its worst single-day drop in 4.5 years (15%), the overall trend remains negative. The broader S&P 500 index gained 0.7% on Monday, marking a 10-day high and building on Friday’s 2.1% rebound, underscoring Tesla’s underperformance relative to the market. Musk’s growing political ties and tariff concerns Tesla’s challenges extend beyond sales and competition. Elon Musk’s increasing involvement in US politics—particularly his alignment with US President Donald Trump—has added complexity to Tesla’s global business strategy. Despite Musk’s strong relationship with Trump, the administration’s tariff policies have negatively impacted Tesla. The company recently urged the US. Trade Representative to adopt a “phased approach” to tariffs, arguing that some Tesla components cannot be sourced domestically. This request contradicts Trump’s unpredictable tariff strategy, which has targeted imports and EV supply chains. Tesla’s political and brand challenges are also reflected in public opinion. According to a CNN poll published last week, 53% of respondents hold a negative view of Musk. 35% view him favorably. 11% remain neutral. Musk’s net worth declines Elon Musk remains the world’s richest person, with an estimated net worth of $329 billion. However, his wealth has declined over $130 billion from its peak of $464 billion in December 2023, when Tesla stock traded at approximately $480 per share following a post-election surge. Tesla faces mounting pressure from Wall Street Tesla’s stock continues to face pressure from major financial institutions. In addition to Mizuho, firms such as Goldman Sachs, JPMorgan, and UBS have revised their Tesla delivery forecasts downward. JPMorgan analysts have specifically highlighted the rapid decline in Tesla’s brand value, particularly in Europe, where Musk’s political positions have alienated key markets.
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