Tesla Stock Slumps Again As Another Firm Warns Of Elon Musk-Led Firm’s ‘Sales Woes'

Forbes - Mar 17th, 2025
Open on Forbes

Tesla shares fell nearly 5% to $238 on Monday, underperforming the broader market which saw gains as the S&P 500 rose by 0.7%. This decline marks Tesla as the worst-performing stock among major S&P constituents. The drop follows a note from Mizuho analysts, led by Vijay Rakesh, who slashed Tesla's price target from $515 to $430 and lowered their 2025 vehicle delivery forecast to 1.8 million from 2.3 million. The analysts cite weakening brand perception, geopolitical tensions, and fierce competition in China as key factors behind the company's sales challenges, with a notable 49% drop in Chinese sales and a 76% decline in Germany despite growth in these markets.

Tesla's struggles reflect broader issues as the company is increasingly entangled in political controversies, with Elon Musk's alignment with right-wing politics affecting brand perception in certain regions. Tesla has also been lobbying against the Trump administration's tariffs, which pose challenges to its supply chain. Despite the stock's current decline, Tesla is still up 7% from last Monday, though shares have fallen 41% year-to-date. Musk's net worth, now at $329 billion, has dropped significantly from a peak of $464 billion, indicating the financial impact of these ongoing challenges.

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RATING

7.2
Fair Story
Consider it well-founded

The article provides a detailed and timely analysis of Tesla's stock performance and the factors influencing it, such as analyst forecasts and geopolitical issues. It uses credible sources and presents data clearly, making it accessible to readers with an interest in financial markets. However, the article could benefit from a more balanced perspective by including positive aspects or counterarguments, as well as more transparency regarding the methodology behind the analyst forecasts. While the article appeals to those interested in financial news, its engagement and impact potential are somewhat limited to this audience. Overall, it is a well-written piece that effectively communicates complex financial information but could be enhanced by broader context and diverse perspectives.

RATING DETAILS

7
Accuracy

The article provides a detailed account of Tesla's stock performance and the factors influencing it, such as analyst forecasts and geopolitical issues. The claim that Tesla's stock declined nearly 5% to $238 per share is specific and verifiable through stock market data. Similarly, the reported performance of the S&P 500 and the details provided by Mizuho analysts about Tesla's delivery forecasts are precise and can be cross-verified with financial reports and analyst notes. However, the article's claim about Tesla's sales performance in various markets, such as the U.S., China, and Germany, needs verification against official sales data. The mention of Elon Musk's net worth and its decline also requires confirmation from reliable financial sources. Overall, while the article is factually dense, some claims require additional verification to ensure complete accuracy.

6
Balance

The article primarily focuses on Tesla's challenges and stock performance, providing a critical perspective on the company's current situation. It includes viewpoints from Mizuho analysts and mentions other financial institutions like Goldman Sachs and JPMorgan, which adds to the diversity of perspectives. However, the article could benefit from more balanced coverage by including positive aspects or counterarguments, such as potential growth opportunities for Tesla or recent achievements. The emphasis on negative factors, such as declining sales and geopolitical issues, without exploring potential positives or responses from Tesla, results in a somewhat skewed perspective.

8
Clarity

The article is well-structured and uses clear language, making it accessible to readers with a general interest in financial news. It logically progresses from Tesla's stock performance to the reasons behind it, such as analyst forecasts and geopolitical factors. The use of specific data points and comparisons, such as stock performance against the S&P 500, aids in comprehension. While the article is generally clear, it could benefit from a more detailed explanation of complex financial terms and concepts for readers who may not be familiar with them.

8
Source quality

The article cites credible sources, including Mizuho analysts and data from FactSet, which are reputable in the financial industry. The inclusion of well-known financial institutions like Goldman Sachs and JPMorgan further enhances the article's credibility. However, while the sources are authoritative, the article would benefit from direct quotes or statements from Tesla representatives or additional industry experts to provide a more comprehensive view. Overall, the quality of sources used in the article is high, but the variety could be improved to include more diverse perspectives.

7
Transparency

The article is transparent in its presentation of data and forecasts, clearly attributing information to Mizuho analysts and other financial institutions. It provides specific figures and percentages, which aids in understanding the basis of the claims. However, the article lacks transparency regarding the methodology behind the analyst forecasts and the criteria used for evaluating Tesla's brand perception and sales performance. Providing more context on how these evaluations were conducted would enhance the article's transparency and help readers better assess the validity of the claims.

Sources

  1. https://www.businessinsider.com/tesla-stock-price-crash-outlook-ross-gerber-elon-musk-tsla-2025-3
  2. https://fortune.com/2025/03/14/elon-musk-private-company-valuations-soar-tesla-stock-falls/