Tesla shares fall 14%, their biggest drop in five years, on March 10, 2025, closing at $222.15 amid growing investor concerns over the company’s future performance. This sharp decline occurred as broader market turbulence hit, with the Nasdaq dropping 4%—its worst daily performance since 2022—while the S&P 500 and Dow Jones also faced losses due to fears of a potential U.S. recession.
UBS analysts downgraded Tesla and lowered their price target due to concerns about slowing demand, especially in China, where local electric vehicle manufacturers are increasing competition. Analysts revised Tesla’s delivery expectations downward in key markets, raising concerns about the company’s near-term growth prospects.
Investor Concerns Grow Over Elon Musk’s Government Involvement
Investor confidence in Tesla declined further as CEO Elon Musk’s growing involvement in government affairs fueled concerns. Musk has been actively overseeing cost-cutting initiatives for the U.S. government, sparking speculation that he is diverting attention from Tesla’s core operations. Many investors feel frustrated, believing Tesla needs stronger leadership focus, especially in a challenging economic environment.
With Tesla’s stock now at its lowest point in years, analysts and shareholders are closely watching the company’s next moves. Questions are being raised about whether Tesla can regain momentum, navigate economic challenges, and maintain its position in the highly competitive EV market. As uncertainty looms, investors are hoping for strategic decisions that will help restore confidence and stabilize Tesla’s performance in the coming months.
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