Tesla's stock has been on a downward trend for seven straight weeks since Elon Musk joined the Trump administration, according to CNBC, marking the longest losing streak in the company's 15-year history as a public company. Closing at $270.48, the stock dropped more than 10% last week, hitting its lowest point since Election Day. This concerning pattern has prompted several major Wall Street firms including Bank of America, Baird, and Goldman Sachs to cut their price targets on Tesla shares.
Since reaching its peak of nearly $480 on December 17, Tesla has lost over $800 billion in market value. CNBC reports that analysts are worried about falling vehicle sales and the lack of updates on a promised low-cost model.
The dramatic drop in Tesla's stock has erased nearly half its value in just three months, as Reuters notes, with investors debating whether the electric vehicle maker remains overpriced despite the steep decline. Although Tesla's market capitalization has fallen 45% from its all-time high of $1.5 trillion in December, the company still commands a valuation far exceeding those of the world's largest automotive and technology firms based on standard financial metrics. Most investors have bought into Musk's vision that Tesla isn't merely a car company but an artificial intelligence pioneer on the verge of revolutionizing transportation with robotaxis and humanoid robots.
According to Reuters' review of analyses from more than a dozen financial institutions, Tesla's electric vehicle business, which generates almost all of its current revenue, accounts for less than a quarter of its stock market value. The bulk of Tesla's worth rests on expectations for autonomous vehicles that haven't materialized despite Musk's repeated promises since 2016 that self-driving Teslas would arrive "next year."
In its latest session, Tesla’s stock price dropped sharply by more than 10%, positioning it as one of the S&P 500’s major decliners, as Investopedia reveals. This continued the negative momentum that has plagued the company for nearly two months straight. Tesla shares have now lost more than half their value since the December 17 record close of $479.86, effectively erasing all post-election gains that followed Donald Trump's November victory. Investopedia attributes this decline to several factors, including weak fourth-quarter deliveries and earnings reports, uncertainty surrounding Trump's tariff policies, and declining sales in China and Europe at the start of the year. The financial news site also notes that analysts remain divided on Tesla's prospects, with 19 brokers tracked by Visible Alpha split between 10 "buy," 5 "hold," and 4 "sell" ratings. Among the pessimists, UBS analysts maintained their "sell" rating while lowering their price target to $225 from $259, according to Investopedia, and cut their first-quarter delivery estimates from 437,000 to 367,000 vehicles.
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