- Tesla’s (TSLA) stock dropped $18.56 or 6.65% to $260.50 in midday trading on Thursday, March 06, as Robert W. Baird cut its price target from $440 to $370, labeling it a “bearish fresh pick” due to Q1 delivery concerns.
- In China, Tesla sold only 30,688 EVs in February, a 49% year-over-year decline and 51.5% drop from January, with global sales of China-made Model 3 and Model Y at 93,926 units for January-February 2025, down 28.7% from last year.
- The company faced a 45% year-over-year sales plunge in the European Union in January, reflecting intensifying competition and weakening demand across key markets.
Tesla’s (TSLA) stock is facing a challenging moment, declining $18.56 or 6.65% to $260.50 in midday trading on Thursday, amid mounting concerns over its global performance. Robert W. Baird, a U.S.-based investment firm, has slashed its price target for the electric vehicle maker from $440 to $370, with analyst Ben Kallo designating it a “bearish fresh pick” due to anticipated near-term obstacles impacting Q1 deliveries. This adjustment reflects a broader unease about Tesla’s ability to sustain its market dominance, particularly as sales data paints a grim picture across key regions, signaling a potential shift in the company’s trajectory within the increasingly competitive EV landscape.
In China, a vital market for Tesla, the company sold just 30,688 electric vehicles in February, according to the China Passenger Car Association, representing a stark 49% drop year-over-year and a 51.5% collapse from January’s figures—the lowest monthly total since August 2022. For the first two months of 2025, global sales of China-made Model 3 and Model Y vehicles totaled 93,926 units, a 28.7% decline from the same period in 2024, highlighting the intensifying rivalry from domestic manufacturers and evolving consumer demand. Beyond China, Tesla’s struggles are evident in the European Union, where new vehicle sales plummeted 45% year-over-year in January, further compounding the pressure on the automaker as it grapples with softening demand and operational hurdles.
The confluence of these factors underscores Tesla’s vulnerability despite its pioneering role in the EV sector. Baird’s Kallo emphasized a bearish short-term outlook, pointing to delivery challenges that could ripple through Tesla’s financials, especially given the company’s reliance on volume growth to maintain its valuation. The sharp sales declines in China and Europe reflect not only regional economic dynamics but also Tesla’s exposure to global supply chain constraints and competitive pricing pressures. As the stock sheds value – 35.5% in the red year-to-date – investor sentiment appears to be recalibrating, with the $370 price target from Baird suggesting a cautious stance on Tesla’s near-term prospects while acknowledging its long-term potential in a rapidly evolving industry.
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