Tesla Stock Approaches 50% Decline from Peak

Tesla Inc (NASDAQ: TSLA) is experiencing significant stock price declines, with its value falling nearly 50% from its all-time highs. Analysts are becoming more cautious as demand shows signs of weakening, particularly in regions like Europe.

Tesla's Situation: Goldman Sachs analyst Mark Delaney has revised the price target for Tesla stock downwards, now estimating it at $320, a decrease from the previous target of $345. Delaney has maintained a Neutral rating on Tesla.

The latest analyst commentary points to broader trends in electric vehicle demand, indicating that weaker consumer interest will probably lead to lower delivery estimates for Tesla.

According to Delaney, "We continue to anticipate that Tesla will encounter challenging fundamental conditions in the near term, and our earnings per share (EPS) projections for 2025 are lower than the consensus average." He believes Tesla's long-term earnings will recover, driven by revenue from software solutions such as Full Self-Driving (FSD).

Reports suggest that a decrease in deliveries during the first quarter is mainly due to the transition to the Model Y and an overall slowdown in demand. However, Delaney expects a robust increase in deliveries as March progresses, owing to the ramp-up of the refreshed Model Y.

In light of new data, his predictions for first-quarter deliveries have been adjusted downward, from 399,000 units to 375,000 units. This includes a notable 40% year-over-year decline in deliveries across Europe in January. For the entire fiscal year, his estimate for Tesla's total deliveries has been reduced to 1.91 million, from an earlier forecast of 1.96 million.

Delaney also remarked on consumer sentiment changes, noting recent survey data reflects diminished perceptions of Tesla's brand value and trust.

Furthermore, he sees increased competition for Tesla in the Chinese market. However, the release of FSD in China remains a positive development. The challenge lies in the fact that competitors are launching similar software without needing additional purchases from consumers, which may hinder Tesla's FSD monetization efforts there.

Current Stock Performance: On Wednesday, Tesla's stock is trading at $271.61, positioning itself towards the lower end of its 52-week trading range, which spans from $138.80 to $488.54. Thus far in 2025, the stock has declined by 28.4%.

After reaching its peak around December, Tesla's stock price has retraced substantially. Following Donald Trump's presidential election win in 2024, Tesla briefly surged but has since returned to similar levels observed back then.

As of now, at $271.61, Tesla's stock inches closer to a near 50% drop from its peak value, reflecting ongoing market dynamics and consumer response.

Tesla, Stock, Analyst