Tesla shares fell about 6% to $225 in the early morning trading on Monday, while broader US market also suffered pressure.
The Dow dropped 454 points or 1.2%. S&P 500 fell 1.4%, and Nasdaq declined 1.8%.
Investors are still monitoring tariffs, protests and earnings. They also have concerns about how Donald Trump’s trade policy might impact Tesla’s China business.
Stocks have been very volatile. They rose from $250 just before the elections to $480 within a few weeks, driven by the optimism of a possible second Trump term, and Elon Musk’s connections to the Trump administration.
After disappointing delivery results in the first quarter and increasing scrutiny over Musk’s involvement on politics, that rally reversed. Shares fell to just below $280 as of April 2.
Tesla’s stock has fallen by more than 40 percent this year.
Tesla will report its financial results for the first quarter of 2025 later this week.
Analysts estimate a revenue of $21.83 billion with earnings projected at $0.44 per share.
Why TSLA is on the decline today
The sell-off on Monday followed a report by Reuters from Friday stating Tesla had postponed their planned low-cost car to 2026.
The car is expected to cost around $30,000, as the company previously stated.
Tesla has now set a production target of 250.000 units for the cheaper model by 2026.
Tesla is expected to release its results Tuesday. Updates on the vehicle will be of particular importance.
Investors and fans have been eagerly awaiting the affordable model. They believe it will be crucial to attract new customers and offset declining sales.
Barclays lowered its target price for Tesla ahead of their earnings report.
Investment research company reduces target from $325 to $275, due to weaker car deliveries and decreasing profit margins.
Analyst cuts Tesla stock price target
Barclays maintained its Equal Weight rating for the Tesla stock, despite lowering the price target to $275. This was done ahead of Tesla’s results from the first quarter.
This revised target implies a gain of 13.9% from the close on Thursday.
Analyst Dan Levy called the earnings set-up of Tesla “confusing,” and cited concerns about weakening fundamentals. He also pointed out that expectations were for auto margins in the first quarter, excluding credit to reach a record low.
The company has also reported a slow start in terms of vehicle sales for 2025, which raises doubts over its growth prospects.
Levy said that, given how important AI, robotics and autonomous driving are to Tesla’s future, a compelling narrative can compensate for weak fundamentals.
Analysts at UBS Goldman Sachs and Mizuho all cut their price target for the company last week. They cited rising tariff risk, weakening of demand and a likelihood that earnings would be revised.
The post Tesla shares drop over 6% before Tuesday’s earnings, as analysts cut their price targets may be updated as new information becomes available.
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