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Tesla witnessed one of its steepest losses earlier today, when the stock closed its regular trading session down ~15 percent. Yet, salvation for the EV giant is now in sight, and that too from an unlikely quarter.
Wall Street analysts have been consistently hammering on the brand damage that Tesla has endured in recent days, which is largely a function of Elon Musk's controversial politics.
For instance, Stifel recently publicized the results of its proprietary survey, which found that the Democrats' view on Tesla has plunged to "all-time lows," while Republicans' willingness to buy a Tesla has "risen sharply."
This paradigm is now evolving into a near-perfect maelstrom for Tesla, where partisanship is rapidly turning into a critical factor for the EV giant's sales calculus, which remains besieged by the phenomenal competition out of China.
China’s Passenger Car Association warns that Elon Musk’s foray into politics risks hurting Tesla’s already plunging electric vehicle sales https://t.co/IMMc4N1MUe
— Bloomberg (@business) March 10, 2025
In fact, it was Tesla's dwindling exports of China-made EVs in February that precipitated today's brutal selloff. For the benefit of those who might not be aware, the EV giant exported just 3,900 EVs from China in February 2025 vs. a whopping 30,200 vehicles in February 2024. The situation for Tesla in China is apparently so dire that China's Passenger Car Association has taken the rare step of flagging Elon Musk's overt political role as a dampener for the EV giant's sales in the country.
BREAKING: President Trump says he is going to "buy a brand new Tesla tomorrow morning as a show of confidence and support for Elon Musk."
This comes as Tesla stock, $TSLA, has fallen -55% from its all time high. pic.twitter.com/7D5kFZEBXM
— The Kobeissi Letter (@KobeissiLetter) March 11, 2025
Yet, as mentioned earlier, Tesla's salvation seems to have arrived. Given the growing number of attacks on Tesla vehicles in recent days in what is being interpreted as a form of backlash against Elon Musk, President Trump has now pledged to "buy a brand new Tesla tomorrow morning."
As a result of this show of confidence, Tesla shares are currently trading at the $225 price level on Robinhood's 24-hour trading venue, corresponding to gains of 1.28 percent relative to the regular trading session's closing price of $222.15. Bear in mind that Tesla closed Nasdaq's extended trading session at a price of $215.01. This means that the stock has recouped its ~3 percent loss recorded in the after-hours trading session. However, much of the regular trading session's loss remains as an overhang.
UBS lowers Tesla PT to $225$TSLA pic.twitter.com/c3uIRHrLZS
— David Tayar (@davidtayar5) March 10, 2025
Meanwhile, UBS has now lowered its target for Tesla shares to $225. UBS analyst Joseph Spak noted:
“We are lowering our 1Q25 delivery forecast to 367k from the 437k we plugged in as a placeholder post 4Q24 results. We believe the current "run-rate" may be slower, but are counting on an end-of-quarter push, potentially driven by more promotional activity."
Spak went on to write:
"Our new forecast puts 1Q25 deliveries -5% y/y and -26% q/q and places our forecast 13% below current Visible Alpha consensus. Our UBS Evidence Lab data shows low delivery times for the Model 3 and Model Y (generally within 2 weeks) in key markets which we believe is indicative of softer demand."
Do you think that Trump's endorsement of Elon Musk's star enterprise would have a lasting impact on the stock? Let us know your thoughts in the comments section below.
About the author: Writing is my one incontrovertible passion. Over the past six years, he has authored over 2,200 distinct articles on financial and tech-related topics, spanning nearly 1 million words. And he has been a member of Wcctech mobile team since 2025. As an alumnus of the University of Toronto, Rotman Commerce Program, I bring nuance, in-depth knowledge, and a unique perspective to every topic that I cover. When I'm not writing, I'm traveling the world, exploring hidden confectionaries and restaurants as an aspiring food connoisseur.
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