Tesla’s stock is losing ground for the ninth consecutive week, with shares falling by another 5% on Tuesday. The decline marks a significant drop from the company’s record highs in mid-December, when shares were trading at 53% above their previous levels.
Several factors are contributing to Tesla’s current struggles. Two new issues have emerged: BYD’s innovative battery technology and Wall Street’s revised forecasts for the EV maker. BYD has unveiled an EV-charging station capable of delivering up to 400 kilometers in just five minutes, making it a major competitor to Tesla in China.
Meanwhile, analysts at RBC have lowered their price target for Tesla to $320 from $440, citing concerns over pricing on the company’s full self-driving technology. Other analysts, such as JPMorgan, have also downgraded their forecasts due to slower vehicle sales worldwide.
Sales data has shown a decline in Chinese and European markets, with Tesla shipments falling by 49% year-over-year in China and 45% in Europe compared to last year. The company’s CEO, Elon Musk, is also under scrutiny for his growing priorities, which have led investors to question whether he can effectively lead the company.
These factors, combined with existing pressures on Tesla, are driving the acceleration of the stock’s decline. As the EV maker faces headwinds from new competitors and reduced forecasts, it remains to be seen how the company will recover and regain investor confidence.
Source: https://www.businessinsider.com/tesla-stock-price-crash-byd-battery-tech-musk-rbc-downgrade-2025-3