Shares extend record losing streak amid declining sales and growing brand challenges
Tesla’s stock has suffered its longest-ever losing streak, declining for seven consecutive weeks since CEO Elon Musk took on a political advisory role in the Trump administration. Shares closed at $270.48 on Friday, marking a more than 10% decline for the week and erasing nearly all of Tesla’s post-election gains. Since peaking at nearly $480 in December, Tesla has lost more than $800 billion in market capitalization.
Several Wall Street firms, including Bank of America, Goldman Sachs, and Baird, have slashed their price targets for Tesla, citing weak vehicle sales, production delays, and intensifying competition in key markets like China and Europe. Analysts have also expressed concern over Tesla’s lack of updates on its much-anticipated low-cost model.
Beyond the company’s operational challenges, investors are increasingly weighing the impact of Musk’s political activities on Tesla’s brand and consumer sentiment. As head of the newly created Department of Government Efficiency (DOGE), Musk has become a central figure in the Trump administration’s aggressive cost-cutting measures. His outspoken political views and social media activity, including controversial posts and attacks on political figures, have fuelled backlash among consumers and investors alike.
This growing discontent has translated into weaker Tesla sales in multiple regions. In Germany, Tesla registrations plummeted 76% last month, even as the overall electric vehicle market grew. Similar declines were reported in France, Norway, and Spain. In the U.S., Tesla’s market share is shrinking, with a recent survey showing that consumer interest in Tesla vehicles has dropped sharply since Musk’s acquisition of Twitter (now X) in 2022.
Despite these headwinds, some analysts remain bullish on Tesla’s long-term prospects. Wedbush Securities’ Dan Ives sees the recent sell-off as a buying opportunity, adding Tesla to the firm’s “Best Ideas” list with a $550 price target. He believes Tesla’s upcoming product cycle, including a lower-cost EV and advancements in autonomous driving, could reignite investor confidence. Similarly, TD Cowen analysts expect Tesla’s sales momentum to recover as new models hit the market in 2025-26.
Still, others warn that Tesla’s valuation remains vulnerable, especially given the company’s declining growth trajectory. JP Morgan analysts have set a bearish price target of $135, arguing that Tesla’s stock has become detached from its fundamentals. UBS analysts echoed similar concerns, questioning the viability of Tesla’s ambitious plans for self-driving technology and humanoid robots.
