Key Takeaways

• Tesla shares fell more than 8% Monday, amid early trading losses within the S&P 500.
• The stock dropped below pre-election levels, having lost over half its value since reaching a peak on December 17.
• Concerns surrounding CEO Elon Musk’s political activities, tariffs, and decreasing registrations in key markets have pressured the stock.

Tesla (TSLA) shares slid more than 8% on Monday morning, marking a concerning start to the week as the electric vehicle manufacturer continues to grapple with persistent stock declines, having experienced losses for the last seven weeks consecutively.

Since reaching a record close of $479.86 in December, shares have plummeted, returning to pre-election values witnessed before November. Observers attribute this downturn to various factors including weak delivery figures for the fourth quarter, uncertainty regarding President Donald Trump’s tariffs, and declining sales and registrations in both China and Europe.

Investor apprehension regarding Musk’s political ties has also come to the forefront, as protests against Tesla and Musk’s involvement with the government have materialized.

Analysts are divided regarding Tesla’s stock performance, with 19 brokers described by Visible Alpha offering a spectrum of advice: 10 suggest ‘buy’, five recommend ‘hold’, and four advise ‘sell’.

UBS analysts reiterated their ‘sell’ rating on Monday, adjusting their price target to $225 from $259 while lowering their first-quarter delivery estimates significantly. Observations indicate that while new vehicle models may provide an opportunity for future sales, current demand appears lackluster at best.

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