Tesla Global News #24

Tesla Faces Growing Concerns Over Slumping Sales and Brand Damage

Analysts Slash Delivery Forecasts as Musk’s Political Role Stirs Debate

Tesla’s sales struggles dominated headlines this week, with new data and analyst revisions painting a grim picture for 2025. On March 12, U.S. registration figures revealed an 11% dip in Tesla vehicle registrations for January, signaling weakening demand in its home market—compounded by a reported 1% sales drop globally in 2024, the first annual decline in 12 years.

Analysts from Evercore ISI and UBS slashed their 2025 delivery forecasts to 1.75 million and 1.7 million units, respectively, down from earlier estimates of 1.875 million, with some warning numbers could fall below 1.7 million. Brinkman and team at Yahoo Finance projected an even bleaker first-quarter estimate of 355,000 vehicles, an 8% year-over-year drop.

This comes amid a broader narrative of “brand degradation,” with a Morgan Stanley survey indicating most investors believe Musk’s high-profile political activities are hurting Tesla’s image. Posts on X and media reports highlighted consumer backlash, including protests at Tesla dealerships, linked to Musk’s cost-cutting role in the Trump administration.

Despite a bright spot—Model 3 registrations jumping 19% in January with the updated model—analysts argue Tesla’s premium valuation (trading at a forward P/E ratio of 65) is increasingly disconnected from its performance as a traditional automaker.