UNITED KINGDOM: On Monday (March 10), Tesla shares fell 15%, marking the stock’s worst single-day drop since September 2020. The decline came after UBS Group analyst Joseph Spak cut his delivery projections for the first quarter and the full year, reflecting concerns about demand for Tesla’s electric vehicles (EVs).
According to Bloomberg, Mr Spak reduced his estimate for Tesla’s first-quarter deliveries to 367,000 vehicles, down 16% from his previous projection. He also no longer expects Tesla to sell more cars in 2025 than it did last year, predicting a roughly 5% decline.
On March 6, Robert W Baird & Co analyst Ben Kallo also lowered his estimates for Tesla deliveries.
Bloomberg’s analyst survey suggests around a 10% increase for the year. Tesla executives also said they expect growth to resume in 2025.
Mr Spak noted that demand for Tesla’s vehicles appears to be “somewhat muted” despite the Model Y refresh. He pointed out that Tesla’s China website shows a short delivery wait time of two to four weeks, suggesting fewer orders.
Tesla CEO Elon Musk’s recent remarks have also faced criticism, impacting Tesla’s reputation in key EV markets. In Germany, Tesla registrations fell 70% in the first two months of 2025 after the Tesla CEO commented on the country’s federal election.
In China, Tesla is facing strong competition from local automaker BYD. Shipments from Tesla’s Shanghai factory plummeted 49% in February, with just 30,688 vehicles delivered — its lowest monthly figure since July 2022.
In the third quarter of 2024, BYD surpassed Tesla in quarterly revenue for the first time. Last year, BYD also outpaced Tesla as Singapore’s top-selling car brand, selling 6,191 vehicles compared to Tesla’s 2,384.
With shares now down 45% for the year, Tesla’s gains following US President Donald Trump’s victory in the US presidential election in November have all gone down the drain. /TISG
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