- Tesla (TSLA) stock fell $15.62 or 5.49% to $268.75 in early trading Tuesday after a 2.8% drop Monday, driven by a 49% year-over-year sales decline in China to 30,688 EVs in February and a 45% drop in EU sales in January.
- Bank of America (BAC) cut Tesla’s price target to $380 from $490, maintaining a ‘Neutral’ rating, citing slower growth, a 9-times EV/EBITDA valuation (down from 10-times), and risks tied to brand sentiment and delays in low-cost model and Robotaxi launches.
- Global sales of China-made Tesla vehicles reached 93,926 units in the first two months of 2025, down 28.7% year-over-year, with February deliveries plunging 51.5% from January, signaling challenges in the world’s largest EV market.
Tesla (TSLA) is facing a challenging landscape as its stock dipped $15.62, or 5.49%, to $268.75 in early trading on Tuesday, following a 2.8% decline on Monday. The electric-vehicle maker’s struggles are multifaceted, with sales data from China revealing a significant downturn. According to the China Passenger Car Association (CPCA), Tesla sold only 30,688 electric vehicles in February, marking a 49% drop year-over-year and the lowest monthly total since August 2022. This figure reflects a steep 51.5% plunge from January, while global sales of China-made Model 3 and Model Y vehicles reached 93,926 units in the first two months of 2025, down 28.7% from the same period last year. These numbers underscore Tesla’s weakening grip on the critical Chinese market, where competition and shifting consumer preferences are intensifying.
The pressure on Tesla extends beyond China, as evidenced by a 45% year-over-year drop in new vehicle sales in the European Union in January. This decline, coupled with broader concerns, has prompted Bank of America (BofA) to reassess its outlook. The firm lowered its price target on Tesla to $380 from $490, maintaining a ‘Neutral’ rating, citing slower growth and rising risks. BofA’s analysts now value Tesla’s automotive business at 9-times EV/EBITDA, down from 10-times, in a sum-of-the-parts analysis, reflecting worries about declining sales momentum and potential dents in brand sentiment. Adding to the uncertainty, Tesla has provided no updates on the anticipated low-cost model or the Robotaxi launch, both of which are seen as pivotal to its growth narrative, further fueling investor unease.
Tesla’s $268.75 share price in early trading captures a market grappling with these headwinds. The 49% sales drop in China, where Tesla faces fierce local competition, and the 45% EU sales decline highlight operational challenges that transcend regional boundaries. With global China-made deliveries at 93,926 units for January and February – down 28.7% year-over-year – and a 51.5% monthly slide in February, Tesla’s ability to regain momentum hinges on addressing these setbacks. BofA’s revised $380 target and ‘Neutral’ rating reflect a cautious stance, highlighting the lack of clarity on new product timelines. This uncertainty places Tesla at a crossroads as it contends with an intensely competitive EV landscape.
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I understand that a lot of investors chose to ride the Rainbow because Tesla was on the up-and-up, still any critical analysis of Tesla’s products, its enormous overcapacity and production, and non-existence of any other product than their cars (stale and not able to face the competition) and power storage make me wonder which sane person values Tesla higher than $25. Their self-driving technology is a dud, robotics decades behind, and what else does it have to offer?
Every single legacy car manufacturer has more cars, better cars, and technology that surpasses Tesla’s be it robotics and self-driving.
Tesla also lacks one critical component. Defense contracts. the Tesla truck is dead if all reports from Pepsi are to be believed, every major logistics company has cancelled their contracts.
so, where is the real value?