Tesla’s stock has been on a wild ride lately, and the numbers don’t look good. After a brief rally sparked by former President Trump’s high-profile Tesla purchase, shares are sliding again.
From falling sales to political controversies, here’s why Tesla’s stock is struggling—and why investors are worried about what comes next.
1. First-Quarter Delivery Estimates Are Down
Wall Street initially expected Tesla to deliver 430,000 cars in Q1. Now, estimates have dropped to 360,000, signaling weaker-than-expected demand.
2. U.S. Sales Are Slipping
Tesla’s U.S. registrations fell 11% in January, with the popular Model Y down 26%. While the Model 3 saw a bump, overall sales trends are headed in the wrong direction.
3. Market Share Is Shrinking
Tesla still leads the U.S. EV market, but its share has dropped 12 percentage points in the past year, while total EV sales in the U.S. grew by 14%. Competitors are catching up.
4. International Sales Are Even Worse
Europe saw a 45% drop in Tesla sales in January, while China’s February numbers plunged 49%. Losing ground in key global markets is a major red flag for investors.
5. Elon Musk’s Political Activity Is Alienating Buyers
Musk’s increased political presence, including his role in the White House’s DOGE department, has turned off some customers. A growing number of potential buyers may be looking elsewhere.
6. Model Y Production Changes Are Hurting Sales
Tesla is in the middle of a Model Y update, which is slowing production. While temporary, the pause is leading to a short-term sales slump that’s worrying investors.
7. Luxury Models Are Taking a Huge Hit
Tesla’s high-end models are struggling the most. In January alone, Model S sales fell 38%, while Model X sales plunged 45%. Price cuts haven’t been enough to reverse the trend.
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8. Cybertruck Hype Is Fading
Despite its futuristic design, the Cybertruck isn’t selling as expected. With just 2,807 registrations in January and ongoing price cuts, its long-term success is in question.
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9. Tesla’s Worst Trading Day in Five Years
On Monday, Tesla’s stock crashed 15.4%, marking its worst single-day drop in nearly five years. Even after a short rebound, shares remain down 50% from their December high.
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10. Uncertainty About the Future
Tesla’s future could go in two very different directions. Some analysts predict a rebound fueled by self-driving taxis and AI robots, while others warn the stock could fall as low as $200 per share.
Read More: How Did Elon Musk Get Rich to Begin With?