New Delhi: Tesla, the largest electric vehicle (EV) manufacturer, is been going through tough phase recently, and amid this its stock plummeted to an all-time low, declining by 15% in a single day, the largest drop in more than four years, this unexpected drop has raised alarms on Wall Street regarding a dip in its demand for Tesla’s vehicles, over the countries. Still, in spite of the bad times, CEO Elon Musk has high hopes for the company’s future.
Sliding demand amid analyst forecasts:
The sudden decline in Tesla’s share price has been driven by analyst negative predictions, Joseph Spak of UBS Group AG reduced his delivery expectations, forecasting Tesla to sell only 367,000 vehicles during the first quarter of 2025, down 16% from his prior estimate. He even anticipates Tesla’s quarterly sales to dip by 5% rather than increase, defying Tesla’s own projections.
Another analyst, Ben Kallo from Robert W. Baird & Co., also lowered his expectations, pointing out concerns about demand and production issues related to the updated Model Y. Spak, which highlighted that Tesla’s website in China shows short delivery wait times of just two to four weeks, a sign that demand might not be as strong as before.
Aside from sales, Tesla is also confronting political and reputational challenges, in Germany, vehicle registrations of Tesla declined by an eye-popping 70% in the first two months of 2025, in part driven by outrage over Musk’s intervention in the nation’s federal election. In China, meanwhile, Tesla is having trouble matching the pace of domestic EV behemoth BYD. In February, Tesla’s Shanghai plant exported just 30,688 cars, 49% fewer than previously and a low not seen since July 2022.
Elon Musk’s observation on this matter:
All these problems notwithstanding, Elon Musk is undeterred. He recently tweeted on X (formerly Twitter), putting investors’ minds at ease when he said, “It will be fine long-term.” But not everyone agrees, with analysts presenting a bleak picture of the immediate future.
Since the beginning of 2025, the stock of Tesla has dropped by 45%, erasing all the gains it had recorded since Donald Trump’s victory in the U.S. presidential election in November. This significant drop has placed additional pressure on Tesla to address its sales decline and market woes.
The road ahead:
Tesla is certainly having some serious issues, dropping demand, political woes, and fierce competition. But Musk’s optimism never falters. The question now is whether Tesla will be able to turn the corner and restore investor trust in the next few months.
