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Tesla (TSLA, Financial) shares extended their slide on Monday, falling over 8% amid weekend protests and a downgrade in first?quarter delivery targets, according to a recent press release. UBS analyst Joseph Spak lowered his Q1 delivery forecast from 437,000 vehicles to 367,000, intensifying investor concerns.
The EV maker has shed more than $700 billion in market value since its mid?December peak and now trades well below its Election Day close. Analysts attribute the decline partly to concerns over CEO Elon Musk's political ties and his involvement in federal cost?cutting initiatives, which critics argue have tarnished Tesla's global brand.
In Europe, vehicle registrations are plummeting, with declines of about 76% in Germany, 55% in Italy, and nearly 50% in Sweden, amid persistent political headwinds. Meanwhile, Tesla's China sales dropped 49% in February, prompting the China Passenger Car Association to warn of risks linked to Musk's personal glory. U.S. showrooms have also become focal points for protests in major cities such as New York and Chicago.
Analysts indicate that these challenges might be short?term as Tesla works to regain momentum amid volatile market conditions and evolving regulatory pressures.
This article first appeared on GuruFocus.