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Tesla (NASDAQ:TSLA) shares dropped 8.74% to $239.71 as of 10:28 AM ET on Monday, continuing a sharp decline amid broad market selling. The electric vehicle maker is now down over 40% in 2025 and trading below its 200-day moving average.
Investor concerns have grown following CEO Elon Musk's association with former President Donald Trump's administration and his role in the Department of Government Efficiency. Over the past week, protests have erupted at Tesla locations in major U.S. cities including New York, Chicago, Austin, Portland, and Seattle, as well as internationally in Lisbon, Barcelona, and London.
On Wall Street, UBS cut its Tesla deliveries forecast and lowered its price target to $225 from $259, citing near-term headwinds. Analyst Joseph Spak noted that while Tesla's long-term AI ambitions, including robo-taxis and humanoid robots, remain promising, the premium valuation already reflects these prospects.
Meanwhile, Wedbush Securities reaffirmed its bullish stance, adding Tesla to its Best Ideas List. Analyst Dan Ives projected that a sub-$35,000 Tesla model expected this summer could drive renewed demand and return the company to growth. Additionally, the upcoming launch of unsupervised Full Self-Driving in Austin this June could mark a major step forward, with Wedbush valuing Tesla's autonomous business at $1 trillion.
This article first appeared on GuruFocus.