The stock fell as much as 7.7% on Monday and closed down 1.67% at $259.16. The move comes after the stock gained 6% last week, ending a nine-week streak of record losses and recording its first weekly gain since Trump took office.
On Monday, Stifel analyst Stephen Gengaro cut his forecast for Tesla's first-quarter deliveries by 23%, from 458,672 to 353,418 vehicles. He attributed his downward revision to the timing of increased production of new Model Y cars and the protests against Musk.
He also said Tesla's much-anticipated lower-priced model, expected to be launched by the end of June, could cause some consumers to delay purchases.
Despite lowering delivery estimates, Gengaro reiterated a buy rating on the stock, lowering the price target 4% to $455 from $474. The new price target still implies about 76% upside from current levels.
"We expect stock price volatility to continue in the near term," Gengaro wrote in a note to clients, adding that he remained "optimistic" about Tesla's mid- to long-term prospects as sales of lower-priced vehicles and the rollout of full self-driving in Austin, Texas, later this year began.
Gengaro is the latest Tesla bull analyst to slash delivery forecasts. Earlier this month, Baird's Ben Kallo lowered his delivery forecast to 315,400 units from 369,400 units.
Last week, even Wedbush analyst Dan Ives, Wall Street's most bullish Tesla analyst, said he expected deliveries to be "very weak," possibly between 355,000 and 360,000 vehicles. Although Tesla should be relatively immune from the tariffs because all of its electric vehicles are assembled in the United States, Ives said Tesla will still be hurt and forced to raise prices because many of the components used to build its electric vehicles are imported.
And the concerns expressed by investors far outweigh those of Wall Street's sell-side analysts. As of Monday's close, Tesla's stock price has fallen 35.8% so far this year.
Meanwhile, the average first-quarter delivery estimate compiled by FactSet fell just 7.1% this month to 408,000 vehicles. This "consensus" forecast is just 13% lower than the forecast at the end of last year.
The current average price target given to Tesla by analysts is $358.25, which means an increase of about 40% from current levels. While the target is 0.6% lower than a month ago, it is 21% higher than three months ago.
The difference in the level of concern among investors and analysts has also led to an increase in the number of bullish analysts. Of the 57 Tesla analysts surveyed by FactSet, 29 (51%) are bullish on Tesla, up from 27 at the end of March and 26 at the end of 2024.
The difference in the level of concern among investors and analysts has also led to an increase in the number of bullish analysts. Of the 57 Tesla analysts surveyed by FactSet, 29 (51%) are bullish on Tesla, up from 27 at the end of March and 26 at the end of 2024.
Cantor Fitzgerald's Andres Sheppard was among the analysts who turned bullish earlier this month. The stock has fallen far enough, he said, and long-term investors should start buying as long as they can handle some volatility in the short term.