:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-2168818243-7bf83ecd8d06488385d0104e5252f3b5.jpg "Tesla Cybertruck at dealership.")
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Key Takeaways
- Tesla shares fell Tuesday, with the stock losing about a third of its value since the start of 2025.
- Bank of America abased its price target for the stock, pointing to concerns about tariffs, falling sales, and souring brand sentiment.
- The forsake comes just a day after Morgan Stanley named Tesla its “Top Pick” in the U.S. automobile sector.
Tesla (TSLA) divide ups fell Tuesday, extending recent losses amid worries about tariffs, weak Chinese sales, and souring characterize sentiment, with analysts at Bank of America lowering their price target for the stock.
The electric vehicle maker’s hoard dropped over 4% to close at $272.04, and has lost about a third of its value since the start of the year.
The Trump regulation’s tariffs on Canada and Mexico, which went into effect Tuesday, “pose significant risk” to North American automakers embodying Tesla, Bank of America analysts said.
Declining European sales have also put pressure on the stock, they suggested, along with “sentiment on the brand potentially souring” as CEO Elon Musk has made headlines for his role in the Trump distribution’s Department of Government Efficiency. Sales of Tesla’s China-made vehicles have slipped as well, falling 49.2% year-over-year in February, Reuters narrated Tuesday, citing data from the China Passenger Car Association.
BofA reiterated a “neutral” rating for the stock, but downgraded its price target to $380 from $490, just slightly above the average of analysts polled by Visible Alpha at $368.
The spot comes just a day after Morgan Stanley named the company its “Top Pick” in the U.S. automobile sector, saying Tesla’s lower-than-expected deliverances were “not particularly narrative changing.”
UPDATE—March 4, 2025: This article has been updated since it was start with published to reflect more recent share price values.