"Tesla Stock is Still a Sell After Its 40% Plunge, UBS Warns"

Ladies and Gentlemen, buckle up! We're diving headfirst into the wild world of Tesla stock, and it's not pretty. The electric vehicle giant has taken a nosedive, and UBS is sounding the alarm. Let's break it down, because if you're holding onto Tesla, you need to know what's coming.

First things first, Tesla's Q4 2024 performance was a disaster. The company slashed its Q1 2025 delivery forecast from 437,000 vehicles to 367,000. That's a massive drop, and it's got investors running for the exits. UBS, one of the smartest firms on Wall Street, has revised its price target for Tesla from $259.00 to $225.00 and kept a "Sell" rating. They're not messing around, folks.

But wait, there's more! Tesla's revenue growth has been pathetic. A measly 0.95% over the last 12 months. That's not growth, that's a crawl. And get this, UBS's Evidence Lab reported lower delivery times for the Model 3 and Model Y in key markets. That's right, softer demand. The auto gross margin, excluding credits, has been revised downward to 10.3% compared to 13.6% in Q4 2024 and 16.4% in Q1 2024. This is a company in trouble, folks.

Now, let's talk about sales. Tesla's sales are plummeting in key global markets. California, the largest EV market in the U.S., saw Tesla's sales drop by 11.6% year-over-year in 2024. The Model 3 and Model Y took a beating, with registrations declining by nearly 30,000 units and over 4,000 units, respectively. And the Cybertruck? It's a flop. Only 9,019 registrations, way lower than expected.

Europe is no better. In Germany, sales dropped 60% in January 2025, with only 1,277 vehicles registered. Tesla lost its top EV brand position to Volkswagen, BMW, Audi, and Chinese brands. In France, sales plummeted by 63% year-over-year in January. And in the UK, despite an increase in EV adoption, Tesla's sales declined by 8%.

China, which accounts for one-third of Tesla’s global sales, saw an 11.5% drop in sales in January 2025. The decline is partly attributed to the seasonal slowdown caused by the Chinese Spring Festival and production adjustments at Tesla’s Shanghai Gigafactory. But the real kicker? Growing competition from local Chinese EV brands.

And let's not forget about Elon Musk. His political involvement is a nightmare for Tesla. A report from the Nonpartisan EV Politics Project indicates that Tesla is losing Democratic-leaning buyers who traditionally support EV adoption faster than it is gaining conservative buyers. This political controversy is a major headache for Tesla.



So, what does all this mean for Tesla's stock? Well, it's a mess. The current market sentiment is bearish, and for good reason. Tesla's stock is trading at $262.67, way below the consensus target price of $338.49 from Wall Street analysts. The market is not buying Tesla's story, and neither should you.

But here's the thing, folks. Tesla is not out of the woods yet. The company's next major test is the launch of the refreshed Model Y. If it's a hit, it could help recover sales. But if consumer perception continues to shift, even a strong Model Y update may not be enough to reverse Tesla's fortunes.

So, what do you do? You sell, sell, sell! Tesla is a sinking ship, and you don't want to be on board when it goes down. Stay away from this stock like the plague. It's a no-brainer, folks. Tesla is a sell, and UBS is right on the money. Don't let the hype fool you. This stock is a disaster waiting to happen.