Tesla's stock price has fallen for nine consecutive weeks. It has decreased by 53% compared to the peak recorded in mid-December last year, marking a halving in value within three months. Business Insider pointed out four factors for the decline in Tesla's stock: △ the rise of BYD batteries △ slowing sales △ owner risk △ downgrades from securities analysts.
On the 18th (local time), Business Insider reported that the Chinese electric vehicle company BYD recently announced the release of a super-fast charging system that allows for a maximum range of 400 km with a 5-minute charge. BYD plans to sell vehicles equipped with this feature starting next month and intends to install 4,000 ultra-fast chargers across China.
Tesla's fastest charging system provides a range of 275 km with a 15-minute charge. Business Insider noted that BYD's charging system, which surpasses Tesla, complicates Tesla's entry into the Chinese market.
Tesla's poor global sales are also identified as a fundamental cause. In China, the world's largest market, Tesla's vehicle shipments amounted to 30,688 units as of February, a 49% decrease compared to the same period last year. This is the lowest number since August 2022.
A similar trend is observed in Europe. In January, overall electric vehicle sales in Europe increased by 37%, while Tesla's sales in the same period decreased by 45% compared to the previous year. This decline continued into February, with particularly sharp drops in sales in Germany, which fell by 76% compared to the previous year.
The intensifying owner risk is also a concern. Business Insider pointed out that "Elon Musk's 'eccentric innovator' image once propelled Tesla's stock to record highs, but the risk has intensified since Musk began political activities during the Trump administration."
Musk is currently engaged in political activities while leading the United States Department of Government Efficiency (DOGE) in addition to managing Tesla and other corporations. An analyst from CFRA noted to Business Insider that "it has become clear that he is now spending more time on DOGE than anything else."
According to recent reports from CNBC, a survey conducted by Morgan Stanley among 245 investors found that 85% of respondents believe Musk's political activities have a "negative" or "very negative" impact on Tesla's business.
Musk is leading a reduction in federal agencies and large-scale layoffs, causing increasing consumer backlash against the Tesla brand. Protests targeting Tesla vehicles and stores have erupted in the U.S. and Europe, and boycotts are continuing in various places.
In response, Wall Street investment firms are consecutively lowering their target prices for Tesla. RBC Capital Markets reduced Tesla's target price from $440 to $320. JPMorgan presented an estimated delivery volume of 355,000 units for Tesla in the first quarter, down 8% from the previous year, and lowered its target price from $135 to $120. Mizuho analyst Vijay Lakshmi also lowered Tesla's target price from $515 to $430. According to financial media Barron's, the average target price among Wall Street analysts is $370.