Tesla Stock Slides Another 6% As More Firms Warn Of Musk-Led Company’s ‘Sales Woes’

Forbes - Mar 18th, 2025
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Tesla's stock is under significant pressure this week, with shares falling more than 6% on Tuesday following a 5% dip on Monday. This marks the ninth consecutive week of decline for the electric vehicle maker led by Elon Musk. Wall Street analysts have adjusted their forecasts, with RBC Capital Markets reducing its price target by $120, citing fierce competition in the Chinese market. Mizuho analysts have also lowered their vehicle delivery forecast for 2025, attributing the decrease to weakening brand perception in the U.S. and Europe, as well as geopolitical tensions. Tesla's decline in market share is compounded by announcements from Chinese EV competitors like BYD and Zeekr, which are introducing innovations such as faster charging systems and free self-driving features.

The stock's downward trajectory highlights broader challenges facing Tesla, including deteriorating brand reputation and geopolitical hurdles, particularly in markets where Musk has engaged with right-wing politics. Tesla's sales in key regions have suffered, with significant declines reported in the U.S., China, and Germany, despite overall growth in the EV market in these areas. Analysts have expressed concerns about the rapid devaluation of Tesla's brand, likening it to unprecedented events in the automotive industry. Despite these challenges, Musk remains the world's richest person, although his net worth has decreased significantly from its peak. The situation underscores the complex interplay between Tesla's global market strategies, political involvement, and its impact on the company's financial performance.

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RATING

7.2
Fair Story
Consider it well-founded

The article provides a detailed and mostly accurate account of Tesla's current market challenges, supported by specific data points and reputable sources. It effectively highlights key issues such as stock performance, competition in China, and analyst predictions, making it relevant and timely for readers interested in financial markets and the automotive industry. While the article is generally clear and well-structured, it could benefit from a more balanced perspective by including potential positive developments or strategic responses from Tesla. Additionally, further exploration of controversial topics, such as Elon Musk's political involvement, could enhance engagement and provoke meaningful discussion. Overall, the article is informative and engaging, with room for improvement in terms of balance and depth of analysis.

RATING DETAILS

7
Accuracy

The article provides a generally accurate account of Tesla's stock performance and the factors influencing it, supported by specific data points such as the stock's 6% drop to $223 and the year-to-date decline of 44%. These figures align with external financial reports, lending credibility to the claims. However, some assertions, such as the predicted halving of Tesla's market share in China, require further verification through additional sources. The article also mentions analyst predictions and adjustments, which are accurately cited, but the impact of these on Tesla's market position could be explored more deeply to enhance factual precision. Overall, while the article is largely truthful, certain areas would benefit from additional corroboration.

6
Balance

The article predominantly focuses on the negative aspects of Tesla's current market situation, such as declining stock prices and competition in China. While these are significant issues, the piece could be more balanced by including potential positive developments or strategic responses from Tesla. For instance, mentioning any recent innovations or market strategies by Tesla could provide a more rounded view. The article does reference some positive analyst ratings, such as the 'outperform' rating from RBC, but these are overshadowed by the overall negative tone. Including a broader range of perspectives would offer a more balanced narrative.

8
Clarity

The article is generally clear and well-structured, with a logical flow that guides the reader through Tesla's current market challenges. The use of specific data points and analyst quotes helps to clarify the situation. However, some technical terms, such as 'outperform rating' and specific financial metrics, might require additional explanation for readers unfamiliar with financial jargon. Simplifying or explaining these terms would improve clarity for a broader audience. Overall, the article maintains a neutral tone and presents information in an accessible manner.

8
Source quality

The article cites reputable sources, including RBC Capital Markets and Mizuho analysts, which enhances its credibility. These sources are well-regarded in the financial industry, providing authoritative insights into Tesla's market performance. The inclusion of specific analysts' names and their statements adds to the reliability of the information presented. However, the article could improve by diversifying its sources, perhaps including perspectives from industry experts or market analysts outside the financial sector, to provide a more comprehensive view.

7
Transparency

The article is transparent in citing its sources and providing specific data points, such as stock prices and analyst predictions. It clearly attributes information to RBC Capital Markets and Mizuho analysts, which helps readers understand the basis of the claims. However, the article could improve transparency by explaining the methodology behind the analysts' predictions and the potential biases that might influence their assessments. Additionally, providing context on how these predictions were formulated would enhance the article's transparency.

Sources

  1. https://www.businessinsider.com/tesla-stock-price-crash-outlook-ross-gerber-elon-musk-tsla-2025-3