Tesla Stock: Shares Plunge Below $200 Amid Image Crisis

Tesla's stock is experiencing a dramatic downward spiral, falling below the psychologically important $200 mark as investors lose confidence in the electric vehicle pioneer. The share price has plummeted more than 50% from its peak earlier this year, with recent trading weeks showing alarming losses of 10-18%. JPMorgan analysts have reinforced their "underweight" rating for the automaker, citing "unprecedented brand damage" that is now clearly reflected in the stock performance. The investment bank has lowered its price target to $120, sending a troubling signal to investors. This negative market sentiment stems from disappointing delivery numbers-down 13% year-over-year to 336,681 vehicles in Q1-alongside shrinking market share in key regions like China, where revenues dropped 20% as local competitors gain ground with more affordable models.

Price Adjustments as Rescue Attempt

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In response to these mounting challenges, Tesla is implementing strategic price adjustments across its product lineup. The company recently introduced a more affordable "Long Range All-Wheel Drive" variant of its refreshed "Juniper" Model Y in North America, following a similar move in the German market made in February. This comes after initially launching only premium-priced "Launch Series" models in January. However, the base model remains absent from the North American offering. Meanwhile, CEO Elon Musk's political associations, particularly his alignment with Donald Trump, have sparked protests and boycotts worldwide, further damaging the brand's reputation. With its price-to-earnings ratio still at an elevated 85, the stock appears fundamentally overvalued, suggesting potential further declines ahead.