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Key Takeaways
- Tesla was one of the worst-performing stocks in the S&P 500 in the first quarter.
- The EV maker has faced falling sales and a backlash to CEO Elon Musk's involvement in the Trump administration, along with uncertainty about how tariffs could impact its business.
- Tesla shares have lost over a third of value since 2025.
Tesla (TSLA) was one of the worst-performing stocks in the S&P 500 in the first quarter, with shares losing more than a third of their value since the start of 2025.
The electric vehicle maker’s stock declined for nine consecutive weeks during the quarter, as sales slumped in key markets and the company faced a backlash to CEO Elon Musk’s political activities, along with uncertainty about how tariffs could impact its business.
Tesla’s European Union sales dropped for a second month in a row, even though new electric vehicle registrations were up. In China, sales fell 50% in February compared to the same month last year as Chinese firms began to eat into Tesla’s share of the market.
Musk’s position as head of the Department of Government Efficiency under the Trump administration has also raised concerns about his political involvement hurting the business of Tesla. Recent protests against Tesla vehicles and vandalism have led one analyst call it a ‘brand tornado crisis’.
Still, Wall Street analysts lean more bullish than bearish on the stock's prospects, with 11 of the 19 analysts tracked by Visible Alpha giving it a "buy" rating, compared to four "hold" and four "sell" ratings. Their average price target at $349 is roughly a third above the stock's closing price of $259.16 Monday.
