Tesla's stock is on track for its ninth consecutive weekly decline, dropping another 7% on Tuesday. This downward trend has seen shares plummet by 53% from their record highs in mid-December.
New Challenges Impacting Tesla's Performance
1. BYD's Innovative Battery Technology
The Chinese company BYD introduced an EV-charging station capable of providing up to 400 kilometers of driving range after just five minutes of charging. This poses a significant challenge to Tesla, especially as it seeks to expand its presence in the Chinese market. BYD plans to deploy 4,000 of these chargers across China, further intensifying the competition.
2. Wall Street Adjusting Forecasts
Although RBC maintains an "outperform" rating on Tesla, it has revised its price target downwards from $440 to $320. Analyst Tom Narayan anticipates reduced pricing for Tesla's full self-driving technology due to the increasing standardization of autonomous features in the EV industry. With heightened competition in Europe and China, Narayan has also lowered robotaxi-penetration assumptions, leading to a decrease in market share projections.
Ongoing Issues Impacting Tesla's Performance
3. Decline in Global Vehicle Sales
Data shows a slowdown in Tesla vehicle sales worldwide, with consumers opting for rival EV brands over Tesla. In China, Tesla's shipments dropped by 49% year-over-year in February, marking the lowest number of Chinese-made vehicle sales since August 2022. Similarly, Tesla purchases in Europe declined by 45% in January compared to the previous year, while overall European EV sales saw a 37% increase. This trend continued into February, with a 76% sales decrease in Germany.
4. CEO Elon Musk's Distractions
Investor concerns are mounting over CEO Elon Musk's focus and priorities. Musk's involvement in the Trump administration, particularly leading the Department of Government Efficiency, has raised questions about his attention to Tesla. Musk's acknowledgment of struggling to balance his commitments to DOGE and his various companies has raised further doubts among investors. Some analysts, like Garrett Nelson from CFRA, have voiced worries about Musk being overstretched and dedicating more time to DOGE than to Tesla.
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By: fdemott@businessinsider.com (Filip De Mott)
Title: Tesla Stock Continues Slide Amid New Challenges and Ongoing Issues
Sourced From: www.businessinsider.com/tesla-stock-price-crash-byd-battery-tech-musk-rbc-downgrade-2025-3
Published Date: Tue, 18 Mar 2025 16:06:15 +0000
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