Shares Hit Lowest Level Since 2023 as Wall Street Turns Bearish
Tesla Inc. (TSLA) shares nosedived more than 15% on Monday, marking their worst single-day performance since September 2020. The selloff pushed Tesla’s stock to its lowest level since before the U.S. presidential election, wiping out all post-election gains and deepening the company’s downward spiral from its record high of $479 per share on December 17, 2023.
The stock has now lost over 50% of its value since that peak, reflecting growing concerns about demand, slowing deliveries, and macroeconomic pressures on the electric vehicle (EV) market.
UBS Slashes Price Target, Cites Weak Demand for Model 3 and Model Y
Adding to investor jitters, UBS analysts downgraded Tesla’s price target to $225 from $259, maintaining their Sell rating. In a note to clients, UBS attributed its bearish outlook to lower-than-expected vehicle deliveries in Q1 2024, primarily due to weak demand for Tesla’s Model 3 and Model Y vehicles.
The firm cut its Q1 delivery forecast to 367,000 vehicles, down from an earlier estimate of 437,000 units—a 26% decline from the previous quarter and a 5% year-over-year drop.
“Our UBS Evidence Lab data shows low delivery times for the Model 3 and Model Y (generally within two weeks) in key markets, which we believe is indicative of softer demand,” UBS analysts stated.
China Shipments Plummet 49%, Hitting Lowest Level in Three Years
Tesla’s China market—a crucial driver of global sales—also reported a sharp 49% drop in shipments in February, marking the lowest level in nearly three years. The decline comes amid increasing competition from local EV makers like BYD and a weaker-than-expected consumer recovery in China.
Tesla’s price cuts in China have failed to meaningfully boost demand, raising concerns about inventory buildup and pricing pressures in the world’s largest EV market.
Tesla Stock Wipes Out Post-Election Gains, Down 20% in March Alone
Monday’s selloff further erased all of Tesla’s post-election gains, adding to the broader “Trump trade unwind” that has influenced the market in recent weeks.
- Tesla stock has dropped over 20% since the start of March, putting it firmly in bear market territory.
- The stock is now down over 50% from its December 2023 high, a stunning reversal for what was once one of Wall Street’s most favored growth stocks.
Tesla Bulls Defend Stock Amid Market Rout
Despite the steep decline, some of Tesla’s most vocal supporters remain confident in the company’s long-term prospects.
🔹 Wedbush analyst Dan Ives reaffirmed his Outperform rating, calling Tesla’s slump a “gut-check moment for Tesla bulls” and adding the stock to Wedbush’s “Best Ideas List” with a $550 price target.
“There have been multiple times over the past decade when negative sentiment has overshadowed the disruptive potential of Tesla. We view this as another such moment,” Ives noted.
🔹 Morgan Stanley analyst Adam Jonas also maintained a bullish stance, forecasting that Tesla shares will climb to $430 as the company expands its artificial intelligence (AI) and robotics divisions. Jonas reinstated Tesla as a top pick in the auto sector, despite short-term concerns.
Bhupendra Singh Chundawat is a seasoned technology journalist with over 22 years of experience in the media industry. He specializes in covering the global technology landscape, with a deep focus on manufacturing trends and the geopolitical impact on tech companies. Currently serving as the Editor at Udaipur Kiran, his insights are shaped by decades of hands-on reporting and editorial leadership in the fast-evolving world of technology.
