Tesla experienced its worst trading day in over four years as its stock plummeted 15% on Monday, extending its steep decline in 2025. The sharp drop comes amid rising concerns on Wall Street about waning demand for the company’s electric vehicles. However, CEO Elon Musk remains unfazed, assuring investors that the company’s long-term prospects remain strong.
"It will be fine long-term," Musk stated in a post on X (formerly Twitter). Despite his optimism, the decline in Tesla’s market value has rattled investors, especially after recent pessimistic analyst projections.
UBS Group AG’s Joseph Spak significantly slashed his delivery estimates for Tesla, predicting only 367,000 vehicles sold in the first quarter - a 16% reduction from his prior forecast. Furthermore, Spak no longer expects Tesla’s annual sales to grow in 2025, instead forecasting a 5% decline. This contradicts the company’s own projections, which anticipate a return to growth.
Ben Kallo, an analyst from Robert W. Baird & Co., also cut his delivery estimates for Tesla on March 6, citing demand concerns and production disruptions linked to the upcoming Model Y refresh. Spak echoed these concerns, noting that Tesla’s website in China suggests relatively short delivery wait times of just two to four weeks - an indication of muted demand.
Tesla under pressure
Tesla is also facing political and reputational headwinds. In Germany, Tesla’s registrations plummeted by 70% in the first two months of 2025, partly attributed to backlash against Musk’s involvement in the country’s hotly contested federal election. Meanwhile, in China, Tesla has struggled to compete with domestic EV leader BYD Co. The company's Shanghai factory saw vehicle shipments nosedive by 49% in February to just 30,688 units, marking its weakest monthly performance since July 2022.
{{/usCountry}}Tesla is also facing political and reputational headwinds. In Germany, Tesla’s registrations plummeted by 70% in the first two months of 2025, partly attributed to backlash against Musk’s involvement in the country’s hotly contested federal election. Meanwhile, in China, Tesla has struggled to compete with domestic EV leader BYD Co. The company's Shanghai factory saw vehicle shipments nosedive by 49% in February to just 30,688 units, marking its weakest monthly performance since July 2022.
{{/usCountry}}Tesla shares have now plunged 45% since the beginning of 2025, erasing all gains made since Donald Trump’s victory in the U.S. presidential election in November. Monday’s 15% drop marked the largest single-day decline for Tesla stock since September 2020, raising concerns about the company’s near-term outlook.