Tesla Stock Slides to New Lows as EV Giant Grapples with Sales Decline and Cybertruck Challenges

Market Performance and Current Challenges

Tesla’s 2025 has been particularly challenging for investors, with TSLA currently ranked as the worst-performing stock in the S&P 500 this year. The significant sell-off has been driven by weakened demand, increasing competition in China, and growing concerns about CEO Elon Musk’s political controversies.

The company’s financial performance has been concerning, with a 71% decline in net income and a 13% drop in EV sales in the first quarter of 2025. Tesla is facing a critical moment due to stagnant design, outdated technology, and declining sales.

Cybertruck Impact and Market Competition

The Cybertruck launch has fallen short of expectations. Initially announced with a base price of $40,000 and top-end tri-motor trim at $70,000, the current pricing has significantly increased. The top-end trim is now $45,000 more than Tesla’s original claim, while the base model costs $70,000, more than 75% higher than initially promised.

Tesla faces particularly strong headwinds in international markets. BYD has overtaken Tesla in China, the world’s largest EV market, while the company struggles with lukewarm sentiment in Europe and Canada, partially affected by Musk’s polarizing political views.

Future Outlook and Analyst Perspectives

According to TradingView, Tesla could trade at $245.11 in 2025, based on 43 analyst targets, with predictions ranging from $85 to $400. This wide range reflects significant uncertainty over Tesla’s next moves. However, GovCapital maintains a more optimistic long-term outlook, predicting an average stock price of $1,534.78 by 2029, potentially reaching $1,700 by year-end.

However, Tesla’s current valuation remains a concern for investors. The stock trades at 120 times consensus 2025 earnings – a premium that might take considerable time to justify. Analysts note there’s very little room for error if growth doesn’t accelerate in the coming years.