The electric car company witnessed its worst trading session in over four years,
March 11, 2025: Tesla Inc. witnessed its worst trading session in over four years, with its stock price crashing 15% on Monday, marking its biggest single-day drop since September 2020. The sell-off has erased over $800 billion in market capitalization since Tesla’s December 2024 peak.
Tesla has now logged seven consecutive weeks of losses, its longest losing streak since going public in 2010.
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📉 Why is Tesla Stock Falling?
1️⃣ Analyst Downgrades & Lower Delivery Estimates
- UBS analyst Joseph Spak cut Tesla’s Q1 2025 delivery forecast by 16% to 367,000 vehicles.
- He also no longer expects Tesla to surpass 2024 sales, predicting a 5% decline instead.
- Ben Kallo (Robert W. Baird & Co.) also lowered his Tesla delivery estimates last week.
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2️⃣ Plummeting EV Sales in Key Markets
- Tesla’s vehicle registrations in Germany fell by 70% in the first two months of 2025.
- Bank of America reports that Tesla’s new vehicle sales in Europe dropped 50% in January YoY, citing a declining brand appeal.
- Buyers are reportedly waiting for the updated Model Y, leading to lower demand for current models.
3️⃣ Musk’s Controversial Image Hurting Tesla’s Reputation
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- Elon Musk’s involvement in Germany’s federal elections has negatively impacted the brand’s perception in the country.
- Tesla’s X (formerly Twitter) faced outages on Monday, sparking frustration among users.
- Musk’s SpaceX is also facing scrutiny after back-to-back Starship rocket explosions during test flights.
4️⃣ US Tariff Concerns & Global Trade War Risks
- Tesla could face higher production costs due to potential new tariffs under President Donald Trump’s trade policies.
- Canada and Mexico are key supply chain hubs for Tesla, and higher import tariffs could disrupt production and raise costs.
📊 Tesla’s Market Cap Wipeout – Key Stats
✅ Tesla share price drop: -15% (Monday, March 11, 2025)
✅ Market cap loss since December 2024 peak: -$800 billion
✅ Tesla stock decline in 2025: -50%
✅ Biggest single-day drop since: September 2020
✅ Longest losing streak since IPO: 7 weeks
🔎 What’s Next for Tesla Stock?
- Investors will closely monitor Q1 vehicle deliveries, due next month.
- Tesla’s Model Y refresh could drive renewed interest if well-received.
- Musk’s ability to rebuild Tesla’s brand appeal in Europe & China will be critical.
- Any clarity on US trade tariffs could reduce uncertainty for Tesla’s supply chain.
📍 Will Tesla rebound or face further declines? Stay tuned for updates! 🚀📉
Tags: Tesla stock crash, TSLA share price, Elon Musk, Nasdaq, EV market, US tariffs, Tesla sales decline, Musk controversy, Model Y update