Tesla's stock (NASDAQ: TSLA) plunged sharply during trading on Monday, dropping by 13.6% or $35.87 to reach $226.80, the lowest level since before the last U.S. presidential elections, amid strong selling pressure and negative forecasts from Wall Street.
These losses came after UBS cut its price target for Tesla’s stock from $259 to $225, citing weak demand for the Model 3 and Model Y, as well as expectations of a decline in first-quarter deliveries to 367,000 vehicles, compared to 437,000 in previous estimates, representing a 5% year-over-year decrease and a 26% drop from the previous quarter.
The pressure on the stock increased after data showed that Tesla's shipments in China fell by 49% in February, reaching a three-year low, raising concerns about a slowdown in global demand. Additionally, Tesla facilities in the U.S. and Europe faced protests and acts of vandalism amid rising public anger against Elon Musk due to his role in managing government efficiency under Trump.
Tesla's stock is facing increasing challenges amid declining demand, falling deliveries, and rising regulatory and public pressures, adding to the uncertainty about the stock's future in the financial markets.
