Tesla: biggest faller on S&P, dogged by bad news
(CercleFinance.com) - Tesla shares suffered the biggest fall in the S&P 500 index on Monday in New York (-15.
4%) after UBS analysts cut their target price for them, saying that they had reduced their sales forecasts for the electric vehicle manufacturer.
The broker said that it is now expecting just 367,000 deliveries in Q1, compared with 437,000 previously, representing a sequential decline of 5% and a year-on-year fall of 26%.
With this estimate, UBS - which still has a "sell" recommendation on the share - says that its forecasts are now 13% below the market consensus.
UBS says that the delivery time for a Model 3 and a Model Y is currently particularly fast, at around two weeks, a phenomenon which it believes suggests weak demand.
As a result the broker has cut its target price from $259 to $225.
For 2025, UBS forecasts 1.7 million unit deliveries, down 5% on 2024, compared with the 10% growth currently anticipated by Wall Street.
While the analyst acknowledges that the business is now more focused on the development of AI, robot taxis and humanoid robots, where the group's progress is undeniable, the professional believes that these are long-term opportunities that are now well priced in, as evidenced by the excessive P/E of around 90x at which the stock is trading.
Following these comments, Tesla shares closed down 15.4% on Monday, taking their losses over the last three months to 50%.
In a separate study, RBC analysts reported that Tesla had seen its sales in China fall by 87% to just 3,911 in January, the lowest level since August 2022.
Copyright (c) 2025 CercleFinance.com. All rights reserved.
4%) after UBS analysts cut their target price for them, saying that they had reduced their sales forecasts for the electric vehicle manufacturer.
The broker said that it is now expecting just 367,000 deliveries in Q1, compared with 437,000 previously, representing a sequential decline of 5% and a year-on-year fall of 26%.
With this estimate, UBS - which still has a "sell" recommendation on the share - says that its forecasts are now 13% below the market consensus.
UBS says that the delivery time for a Model 3 and a Model Y is currently particularly fast, at around two weeks, a phenomenon which it believes suggests weak demand.
As a result the broker has cut its target price from $259 to $225.
For 2025, UBS forecasts 1.7 million unit deliveries, down 5% on 2024, compared with the 10% growth currently anticipated by Wall Street.
While the analyst acknowledges that the business is now more focused on the development of AI, robot taxis and humanoid robots, where the group's progress is undeniable, the professional believes that these are long-term opportunities that are now well priced in, as evidenced by the excessive P/E of around 90x at which the stock is trading.
Following these comments, Tesla shares closed down 15.4% on Monday, taking their losses over the last three months to 50%.
In a separate study, RBC analysts reported that Tesla had seen its sales in China fall by 87% to just 3,911 in January, the lowest level since August 2022.
Copyright (c) 2025 CercleFinance.com. All rights reserved.