Tesla Stock Slides Another 5% As More Firms Warn Company’s ‘Sales Woes’

The share price of Tesla suffered another 5% decline on Tuesday, reaching $225.31 after a similar drop on Monday. The electric vehicle (EV) giant Tesla, under Elon Musk’s leadership, faces its ninth consecutive week of losses because of declining worldwide sales and rising market competition and political issues facing Musk.

The analyst from RBC Capital Markets, Tom Narayan, reduced Tesla’s price target by $120 to $320 because he believed Chinese market competition was getting more competitive after Tesla recorded a 49% sales decrease in China’s rapidly expanding EV sector. He believes that Chinese automakers based in local regions will take control of the driverless vehicle space, which Tesla considers vital for its upcoming developments. The Mizuho analysts decreased their Tesla share price target while lowering their projected 2025 delivery numbers by 20%, from 2.3 million to 1.8 million vehicles, because of deteriorating brand recognition across U.S. and European markets.

The difficulties facing Tesla became worse when Chinese EV manufacturers BYD and Zeekr made significant progress. BYD released a fast-charging system that surpasses Tesla’s technology, while Zeekr will provide its self-driving system free of charge to Chinese customers. The analysts at RBC forecast that Tesla’s Chinese market share will decrease to 10% from its current level.

The stock value of Tesla has declined by 44% throughout this year, which makes it the most severely affected company in the S&P 500. JPMorgan analysts observed Tesla’s brand value plummeting fast in regions where Musk’s political views created controversy, such as Germany. Tesla works to fight against former President Trump’s tariff policies even though Musk has close ties with him because these policies endanger the company’s manufacturing network.

The decline of Tesla stock has resulted in a $140 billion reduction of Musk’s personal wealth since December. The economic instability and rising market competition create substantial pressure for Tesla to maintain its current position in the market.