Tesla’s Stock Plummets 48% as Musk’s Leadership and EV Market Challenges Intensify

Tesla Faces Unprecedented Market Decline Amid Leadership Concerns

Tesla, the electric vehicle giant, is experiencing a significant market downturn, with analysts expressing growing concerns over CEO Elon Musk’s leadership and political involvement. The company has lost nearly 48% of its market capitalization in recent months, a decline JPMorgan analysts describe as unprecedented in automotive history.

JPMorgan has lowered Tesla’s price target by 41%, from $230.58 to $135, citing a forecasted 8% year-over-year decrease in vehicle deliveries for Q1 2025. This global sales decline is not limited to a single market, raising alarms across the industry.

The company’s challenges appear to be multifaceted, with Musk’s involvement in the Trump administration and other political activities potentially impacting Tesla’s brand reputation. Protests and vandalism at Tesla showrooms across the US have been reported, prompting President Trump to defend the company and consider labeling vandals as domestic terrorists.

Analysts are particularly concerned about Musk’s focus being diverted from Tesla due to his political engagements and other ventures, including his acquisition of X (formerly Twitter). Morgan Stanley analysts point to “sales data, negative brand sentiment, and market de-grossing” as key factors in the stock’s decline.

Despite these setbacks, Tesla remains the most valuable car company globally, surpassing Toyota. Future catalysts for the company include the development of a robotaxi and the humanoid robot, Optimus. However, analysts caution investors about delivery timeline expectations, given Musk’s history of missed deadlines.

As Tesla navigates these challenges, the automotive industry watches closely to see how the company will address its market decline and leadership concerns in the coming months.