Tesla shares fall over 15% over concerns of slowing sales

In 2025 alone, Tesla stock fell a staggering 45%, losing all gains since Donald Trump, whom Elon Musk is a fierce supporter of, won the November US elections.

Tesla Inc shares witnessed the largest single-day decline in its price since September 2020 due to growing concerns on Wall Street about demand for its electric vehicles (EVs).

A prime reason why the company's shares have been losing value boils down to it struggling in China, the world’s largest EV market, to keep up with domestic giant BYD Co. (AFP)

The billionaire Elon Musk-led company's shares closed 15.43% down, reaching $222.15 on the Nasdaq on Monday, March 10, 2025. This was a decline of $40.52.

In 2025 alone, it fell a staggering 45%, losing all gains since Donald Trump, whom Musk is a fierce supporter of, won the November US presidential election, according to a Bloomberg report.

Why are Tesla shares falling in value?

A prime reason why the company's shares have been losing value boils down to it struggling in China, the world’s largest EV market, to keep up with domestic giant BYD Co.

Tesla shipments from the company's Shanghai plant plummeted 49% in February to just 30,688 vehicles, which is the lowest monthly figure since July 2022, according to the report.

This is also true in Germany where registrations drastically fell by 70% during the first two months of 2025.

Meanwhile, UBS Group AG and Robert W. Baird & Co both cut their delivery projections for the first quarter as well as for the full year, the report read.

UBS Group's Joseph Spak sees Tesla only handling 367,000 vehicles this quarter, which is a 16% drop from the prior estimate.

“While we do expect the Model Y refresh to help, we believe orders are somewhat muted,” the report quoted Spak s having written in a report to clients, citing Tesla’s website in China showing that customers only need to wait two to four weeks for delivery of the new SUV.