Tesla plunged 15%, its largest one-day drop since 2020
The U.S. stock market opened lower and continued to decline yesterday, with the Nasdaq 100 index dropping 3.8%, marking its biggest single-day loss since 2022.
$Tesla Motors(TSLA)$ plunged 15%, its largest one-day drop since 2020. The market sell-off hasn't stopped—futures opened lower again this morning. Tesla’s stock has already fallen 45% this year and has been cut in half from its peak late last year.
Analysts once again lowered Tesla’s Q1 delivery estimates yesterday. On Monday, UBS downgraded its first-quarter delivery forecast, citing shorter delivery times for the Model 3 and Model Y in key European markets, indicating weak demand. Sales in Germany, France, Norway, and Spain were particularly sluggish, with only the UK market showing relative strength.
Investors are also concerned about Elon Musk’s role as head of the DOGE under the Trump administration. Since 2025, Musk has spent most of his time working on reducing federal government positions, raising doubts about his ability to focus on Tesla’s operations.
However, as many commenters have pointed out, Tesla investors remain steadfast in their beliefs. Tesla bull and Wedbush analyst Dan Ives stated that, over the past 15 years, many short-sellers and skeptics have repeatedly predicted Tesla’s downfall, but the idea that Musk’s actions will derail Tesla’s growth trajectory is misguided.
Tesla is at the beginning of its most significant innovation phase in history!
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