Tesla (TSLA) stock tumbled over 6% in pre-market trading on Monday, as growing concerns over its Q1 vehicle deliveries intensified investor fears. With the company’s Q1 delivery figures set for release on Wednesday, analysts have lowered their expectations for Tesla’s Q1 2025 performance. As a result, investor worries are mounting, putting further pressure on the stock. Year-to-date, TSLA stock has declined by 35%.
Don’t Miss Our End of Quarter Offers:
Tesla Braces for a Tough Quarter
After Tesla experienced its first annual decline in deliveries in 2024, Musk reassured investors that growth would return this year. However, market conditions have deteriorated further, leaving the company facing its most negative investor sentiment in years.
Consequently, Tesla investors are preparing for a potential decline in first-quarter vehicle deliveries as weakening demand and intense competition, coupled with backlash over CEO Elon Musk’s political stance, weigh on the company.
Overall, Wall Street analysts estimate that Tesla delivered approximately 373,000 vehicles between January and March, based on an average of 15 recent forecasts from Visible Alpha. These estimates, updated over the past month, factor in rising concerns over demand. If accurate, this would mark a 3.6% decline compared to the 386,810 vehicles Tesla delivered during the same period last year.
Deutsche Bank Lowers TSLA Price Target
TSLA stock took another hit as Deutsche Bank analyst Edison Yu slashed his price target from $420 to $345, citing weaker demand and delays in the Model Q rollout. Nonetheless, Yu reaffirmed a Buy rating on TSLA, projecting a 31% upside from current levels.
Deutsche Bank’s tracking data suggests Tesla will deliver between 340,000 and 350,000 vehicles in Q1, which could put additional strain on the company’s auto margins. For the full year, the firm expects Tesla’s total deliveries to drop by 5% year-over-year to 1.7 million units. This projection assumes a phased rollout of the Model Q, beginning in the U.S. before expanding to Europe and later to China.
Is Tesla a Good Stock to Buy Right Now?
On Wall Street, analysts have maintained a neutral stance on Tesla stock. According to TipRanks, TSLA stock has received a Hold consensus rating, with 14 Buys, 11 Holds, and 12 Sells assigned in the last three months. The average price target for Tesla shares is $325.6, suggesting a potential upside of 24% from the current level.