Tesla Inc (TSLA:NASDAQ) is in a difficult period in 2025, characterized by declining sales, declining market share and pressure on management from investors. The company’s stock has seen a significant decline and the analyst community is revising its estimates downward.
Declining sales and market share
In the first quarter of 2025, Tesla delivered a total of 336,681 vehicles, down 13% year-over-year. The results fell short of market expectations and signal a cooling in demand, particularly in the competitive, crowded electric vehicle segment. According to S&P Global Mobility data, Tesla’s market share in the US EV market is expected to fall below 20% by the end of 2025 (compared to 65% in 2023).
Stock Trends
As of April 22, 2025, Tesla (NASDAQ:TSLA) stock is trading at approximately $227.50. This represents a decline of more than 44% since the beginning of the year. This development reflects not only lower-than-expected financial results, but also investor concerns about the company’s future strategic direction. The behaviour of CEO Elon Musk has attracted considerable media and investor attention. He is facing criticism for his public policy activities, which, according to Wedbush analyst Dan Ives, are negatively affecting the perception of the Tesla brand. Ives called the situation “Code Red” and urged Musk to concentrate more on the operational management of the company.
Financials
Financials for the fourth quarter of 2024 also fell short of expectations. The company reported revenue of $25.71 billion and adjusted earnings per share (EPS) of $0.73. Gross margin fell to 16.3%, reflecting pricing pressure and rising costs in the global supply chain.
Conclusion
2025 represents a pivotal moment for Tesla to respond to changes in the competitive landscape, restore investor confidence, and introduce new innovations. It will also be crucial whether the company’s management proceeds to strategically reassess its market position and effectively allocate resources in favor of long-term growth. The average target price for the short , to medium-term investment horizon has been set at $304.47 per share by Zacks.com.
