Written by Cláudio Afonso | LinkedIn | X
Tesla shares fell sharply on Monday, dropping to $238 in early trading and extending their losing streak to an eighth consecutive week. Despite the surge immediately after the U.S. Presidential Election, the stock has given up the gains.
The stock had closed at $270 on Friday but slid to an intraday low of $237.60, extending declines to 51% from its record high reached in December. The electric vehicle maker has lost over $800 billion in market capitalization since then.
UBS analyst Joseph Spak lowered his price target on Tesla to $225 from $259 while maintaining a Sell rating. In a note released Monday, Spak cited weaker-than-expected delivery volumes as a key concern.
His revised forecast for first-quarter deliveries stands at 367,000 units, a 5% year-on-year decline, down from the 437,000 units projected following Tesla’s fourth-quarter earnings in January.
The drop in Tesla’s stock price coincided with new data from China’s Passenger Car Association (CPCA), which reported a 49% decline in Tesla’s February shipments from China. Meanwhile, sales of new energy vehicles (NEVs) in the country surged 80% year-on-year.
Tesla recently began deliveries of its refreshed Model Y in the U.S., just one day after its first European deliveries commenced from the company’s Giga Berlin plant. In China, deliveries of the updated Model Y began on February 26.
However, as the company transitions to the new version of its best-selling model, its overall sales have trailed last year’s figures in the first two months of 2025.
Sales in key European markets have also weakened. Tesla’s registrations in Germany dropped 71% year-on-year in the first two months of 2025, while France recorded a 44% decline. The U.K. was the only major European market to report an increase, with 3,852 Tesla vehicles registered in February, up 21% year-on-year.