Since the US Election pump it received late last year, Tesla stock (TSLA) has steeply declined in share value, and those conditions worsened Monday. Amid one of the worst US stock market days in four years, Tesla shares fell over 15%, headlining an overall decline in the S&P 500 today. It was the biggest fall for Tesla since the 2020 pandemic.
The tech-heavy Nasdaq Composite (^IXIC) fell 4% in its worst day since 2022, as the “Magnificent Seven” stocks led the sell-off. Tesla’s (TSLA) rout continued, plunging 15% and officially wiping out the gains it had made in the wake of Trump’s election win. Furthermore, all three major indexes built on losses of more than 2% last week as the Nasdaq plummeted deeper into correction territory.
Analysts Suggest Further Losses for Tesla
Analysts are also projecting a cutback in numbers for Tesla, which also could tank its stock value more. UBS Group AG’s Joseph Spak cut delivery projections both for the first quarter and the full year. Robert W. Baird & Co. analyst Ben Kallo similarly lowered his estimates for Tesla deliveries on March 6. UBS now expects the company to deliver 367,000 cars in the first quarter, down from the 437,000 it said it had “plugged in as a placeholder” after Tesla’s fourth quarter results in late January.
Moreover, as its European sales have been decimated, Tesla is looking for any signs of a rebound. Tesla stock was also pressured by news that shipments in China fell 49% from last year in February to the lowest level in almost three years. The current stock market crisis appears bearish for the company’s future. There is still room to turn things around, despite Telsa (TSLA) dropping 27% in February. Its performance saw $375 billion leave its market value as it was booted from the $1 trillion club.
Also Read: Tesla (TSLA) Stock May Get Boost From Trump Tariffs: Here’s How
On the other hand, there are some finance experts who see a bright spot in the EV maker’s future. Indeed, while many companies, especially in automotive, have suffered amid the tariff talks, Tesla builds all the cars it sells in the United States in California and Texas. Tesla has built largely self-sufficient supply chains in the United States and China, a rarity in a world of interconnected trade. As a result, the tariffs imposed by the Trump administration on Chinese goods, and the continuing threat to put them on Mexican and Canadian products, might help Tesla by hurting its competitors more.
