Tesla Shares Drop Over 15% in Worst Day Since 2020, Market Cap Falls 45% Amid Analyst Optimism

Tesla Inc.'s shares experienced a significant decline, dropping more than 15% on Monday, marking the company's worst single-day performance since September 2020. The stock closed at $222.15, erasing all post-election gains and falling over 50% from its December high of $479.86. The plunge in Tesla's stock price has been attributed to various factors, including concerns over demand for the company's electric vehicles. Analysts at UBS lowered their price target for Tesla to $225 from $259, citing lower delivery forecasts for the first quarter due to softer demand for Model 3 and Model Y vehicles. UBS now expects Tesla to deliver 367,000 cars in the first quarter and maintained a Sell rating on the stock. Tesla's market capitalization has dropped 45% from its all-time high of $1.5 trillion, erasing most of the gains made after CEO Elon Musk helped finance the election victory of President Donald Trump. The company's shares have been under pressure amid broader market concerns about the health of the U.S. economy and potential recession fears. Additionally, Tesla's shipments in China fell 49% from last year in February, reaching the lowest level in almost three years. Despite the significant drop, some analysts remain bullish on Tesla's long-term prospects. Wedbush analyst Dan Ives added Tesla to the firm's 'Best Ideas List' and maintained an Outperform rating with a $550 price target, suggesting that the current slump is a temporary setback. Morgan Stanley analyst Adam Jonas also reiterated a bullish view, forecasting shares will rise to $430 as Tesla diversifies into artificial intelligence and robotics.