Tesla stock is still a sell after its 40% plunge, UBS warns

Leaning into the carnivore communicative connected Tesla (TSLA).

UBS expert Joseph Spak reiterated his 12-month Sell standing connected Tesla shares connected Monday, voicing sizeable interest connected the near-term request outlook for the Model 3 and Model Y. He slashed his terms people connected Tesla to $225 from $259.

The statement terms people connected the Street is $239, according to Yahoo Finance data.

The banal tanked 8% to $242 successful aboriginal trading alongside a broader deed to markets owed to tariff concerns.

"While the semipermanent communicative astatine Tesla has shifted to AI (robo-taxis and humanoid robots) and advancement determination continues, we judge these are longer dated opportunities that the premium aggregate already (more than) considers. Stock is presently trading astatine 90x P/E connected statement (EPS) estimates for 2025, but again we judge that is excessively high," Spak said.

Spak forecasts archetypal 4th deliveries for Tesla to diminution 5% twelvemonth implicit twelvemonth and 26% sequentially. His caller deliveries estimates is 13% beneath existent statement estimates.

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The bearish enactment is the latest dreadful quality for the Tesla faithful.

Tesla shares are down 40% twelvemonth to day and are the worst-performing constituent of the "Magnificent Seven" stocks — which besides see Apple (AAPL), Amazon (AMZN), Nvidia (NVDA), Google (GOOG), Microsoft (MSFT), and Meta (META).

The banal fell 28% successful February unsocial versus a humble driblet for the S&P 500 (^GSPC). Shares are down 7% successful February compared to a 3% diminution for the S&P 500.

The weakness successful sentiment reflects much than conscionable interest that Elon Musk's closeness with Trump is turning distant buyers astir the satellite (though alleged attacks astatine Tesla stores are fueling this narrative).

Tesla sold conscionable 26,677 vehicles successful China's marketplace successful February, according to information released contiguous by the China Passenger Car Association. The fig marked an 11.16% driblet twelvemonth implicit twelvemonth and 20% diminution from January.

At the aforesaid time, Australia's Electric Vehicle Council reported that Tesla's wide income fell 72% twelvemonth implicit twelvemonth successful February.

In the US, prices connected utilized Cybertrucks, Model 3s, Model Ss, Model Ys, and Model Xs proceed to drop. Tesla is facing accrued EV contention from General Motors (GM) and Ford (F), portion immoderate consumers are opting for hybrids.

In the past 90 days, the mean terms of a Tesla has declined 4%, according to information from CarGurus. The fastest terms declines are successful Cybertrucks, followed by the Model S.

Meanwhile, caller tariffs from the Trump medication basal to rise costs for Tesla and different automakers.