Tesla Stock Plunges 2.76% Amid Analyst Downgrade, Safety Concerns

On April 7, 2025, Tesla's stock experienced a 2.76% drop in pre-market trading, reflecting investor concerns and market sentiment.

One of the key factors contributing to the decline in Tesla's stock price is the recent reduction in the target price by a prominent analyst. Daniel Ives, a long-time bull on Tesla from Wedbush Securities, has slashed the stock's target price by 43%, citing the dual impact of political uncertainties and brand crises. Ives, who has been a strong advocate for Tesla, now sees the stock at $315, down from the previous target of $550. This significant reduction underscores the growing concerns over the company's future prospects in the face of political headwinds and internal challenges.

Additionally, recent incidents involving Tesla vehicles have added to the negative sentiment. A high-speed accident in Chongqing, China, where a Tesla Model Y crashed into a barrier and subsequently collided with multiple parked cars, has raised questions about the safety and reliability of Tesla's vehicles. While the exact cause of the accident is still under investigation, the incident has sparked discussions about potential issues with the vehicle's braking system and overall safety features. This incident, coupled with the analyst's downgrade, has further weighed on investor confidence in the company.