Background and Causes
1. Weak Quarterly Results and Declined Expectations
Tesla recently reported vehicle deliveries that were significantly below already lowered expectations – at the lowest level since 2022. Analysts have repeatedly revised their revenue and profit estimates downwards in recent weeks, even before the weak numbers were officially released.
2. Analyst Opinions
Ryan Brinkman from JPMorgan is among the most pessimistic voices on Wall Street regarding Tesla. He admits that the extent of consumer reaction as well as the “unprecedented brand damage” may have been underestimated. Other analysts also continue to see risks from high valuations (P/E expectation for 2025 is around 82) and uncertainties in the company’s growth path.
3. Political Influences
Elon Musk warned that Tesla will not benefit unscathed from new tariffs on imported cars – even though the company is considered relatively insensitive to such measures. However, the greater concern for many experts is Tesla’s position in China: New tariff policies could persuade Chinese consumers to increasingly turn to local manufacturers like BYD or Nio.
Current Share Price Development
Today’s Decline: The share price fell by 4.14 percent today.
Long-term Development: Since the peak at the end of December 2024, the stock price has more than halved; on February 14, it was already around $355 (after a decline of about 27% from the all-time high).
Valuation: Despite the sharply fallen price, the P/E ratio remains high (currently about 82), which many analysts see as overvalued.
Volatility: Tesla shares remain very volatile – both in the short and long term, they show strong fluctuations up and down.
Outlook
The current situation reflects a mix of disappointed growth expectations, political uncertainties, and a critical valuation by analysts. While some experts like Tom Lee from Fundstrat remain optimistic (“super bullish”), skepticism currently predominates in light of weak numbers and high valuation risks.
In summary: The sharp decline in Tesla’s stock price today is primarily due to disappointing quarterly results and lowered expectations – intensified by political uncertainties and difficult competition, especially in the key market of China. High volatility remains; many experts still consider the stock overvalued despite the recent price drop.