Tesla Stock: 40% Plunge as Analysts Cut Targets

Tesla's stock has plummeted over 40% since the beginning of the year, with recent trading sessions showing continued weakness. The electric vehicle pioneer, once a Wall Street darling, has seen its market performance deteriorate significantly amid multiple challenges. Several financial institutions have downgraded their price targets, including RBC Capital Markets, which lowered its target from $440 to $320, and Mizuho, which reduced its forecast from $515 to $430. Despite these substantial reductions, analysts maintain some optimism, with RBC still rating Tesla as "Outperform" despite concerns about autonomous driving technology and robotaxi market penetration timelines, particularly in China and Europe.

Used Vehicle Prices Compound Problems

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Sollten Anleger sofort verkaufen? Oder lohnt sich doch der Einstieg bei Tesla?

Adding to Tesla's troubles is a dramatic decline in used vehicle prices, with data showing the average price for a used Model Y dropping by $6,000 since March 2024 and approximately $20,000 year-over-year. Simultaneously, the supply of preowned Teslas has surged from about 8,800 to 14,000 vehicles weekly over the past year. International tensions further complicate Tesla's outlook, as the company faces headwinds in both Canada, where Toronto has suspended government subsidies for Tesla vehicles, and China, where growth prospects appear increasingly challenging amidst a more competitive landscape featuring 76 electric vehicle models compared to 58 last year.