Tesla shares have fallen by a record 15% since 2020

Tesla shares fell 15% on Monday, their worst trading day in four years, on concerns about declining demand for electric vehicles and revised supply forecasts. Tesla shares have lost 45% of their value since the start of 2025.

UBS Group AG analyst Joseph Spak cut his forecast for Tesla’s first-quarter sales to 367,000 vehicles, down 16% from his previous forecast. He also no longer expects sales to grow in 2025, instead predicting a 5% decline. Other Wall Street analysts have also become more pessimistic about the company’s prospects.

The situation is being exacerbated by short delivery times in China, which indicates a lack of orders. Tesla is also facing a decline in popularity in Europe, with registrations of the company’s new cars in Germany falling 70% in the first two months of the year. In China, sales from its Shanghai factory fell 49% in February, the lowest since 2022.

Factors contributing to Tesla’s decline include the Model Y update, increased competition from BYD and other manufacturers, and a reputational blow from Elon Musk’s political statements. Investors are increasingly skeptical about the company’s ability to maintain its leadership position in the electric vehicle market.