Tesla shares dropped about 6% in early trading Monday to roughly $225, with broader US markets also under pressure.
The Dow fell 454 points, or 1.2%, while the S&P 500 declined 1.4% and the Nasdaq slid 1.8%.
Investors continue to monitor tariffs, protests, and upcoming earnings, with added concerns over how President Donald Trump’s trade stance might affect Tesla’s business in China.
The stock has been volatile, rising from around $250 before the election to $480 in the weeks that followed, fueled by optimism over a potential second Trump term and CEO Elon Musk’s ties to the administration.
That rally reversed after disappointing first-quarter delivery numbers and increased scrutiny of Musk’s political involvement, with shares slipping to just above $280 by April 2.
Tesla stock is down more than 40% so far this year.
Tesla is scheduled to report its first-quarter 2025 financial results later this week.
Analysts have a consensus revenue estimate of approximately $21.83 billion, with earnings per share projected to be $0.44.
Why TSLA stock is taking a dive today
Monday’s sell-off followed a Reuters report from Friday stating that Tesla has postponed its planned low-cost vehicle to 2026.
The company had previously indicated production would start in the first half of this year, with the car expected to be priced around $30,000.
The report said Tesla is now targeting production of 250,000 units of the lower-priced model in 2026.
With Tesla set to report results on Tuesday, updates on this vehicle are expected to be a key focus.
The affordable model has been highly anticipated by both investors and fans, seen as critical to attracting new buyers and offsetting declining sales and shrinking market share.
Another factor affecting Tesla’s share price was Barclays’ decision to lower its price target ahead of the company’s earnings report.
The investment research firm reduced its target to $275 from $325, citing weaker vehicle deliveries and declining profit margins.
Analyst cuts Tesla stock price target
Barclays has lowered its price target on Tesla to $275 from $325 ahead of the company’s first-quarter results, maintaining an Equal Weight rating on the stock.
The revised target suggests a 13.9% upside from Thursday’s close.
Analyst Dan Levy described the set-up for Tesla’s earnings as “confusing,” pointing to concerns over weakening fundamentals, including expectations for first-quarter auto margins excluding credits to hit a new low.
He also flagged a soft start to 2025 vehicle volumes, raising doubts about the company’s growth prospects this year.
However, Levy noted that a strong narrative could offset weak fundamentals, particularly if CEO Elon Musk signals plans to step back from his political involvement and refocus on Tesla, given the importance of AI, autonomous driving, and robotics to the company’s long-term outlook.
Last week, analysts at UBS, Goldman Sachs, and Mizuho cut their price targets for the company, pointing to rising tariff risks, weakening demand, and the likelihood of earnings revisions.
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