Tesla(TSLA) Business Insider·2025-03-13 02:37Core Viewpoint - Tesla has experienced an unprecedented decline in market value, with analysts noting that this situation is unparalleled in automotive history, comparing it to past declines of Japanese and Korean brands during diplomatic disputes with China [1][2][9]. Market Performance - Tesla's market capitalization has dropped nearly 49% from a peak of 777 billion [3][9]. - The company's price target has been reduced by JPMorgan analysts by about 41%, from 135, with vehicle delivery guidance for Q1 2025 lowered to around 355,000 units, reflecting an 8% year-over-year decrease [2][3]. Sales and Branding Issues - The decline in Tesla's sales is not confined to a specific market, indicating a broader global issue [2]. - Recent protests and vandalism at Tesla showrooms in the US have raised concerns about the brand's reputation [6]. - Analysts have noted that Elon Musk's political engagements may be negatively impacting Tesla's sales and brand perception [5][8]. Leadership and Management Concerns - There are concerns regarding Musk's distractions from core business operations due to his political activities, particularly following his acquisition of X (formerly Twitter) [7][8]. - Analysts have highlighted that the simultaneous decline in Tesla's pricing and unit volume expectations coincides with Musk's increased focus on political matters [7]. Future Prospects - Despite current challenges, Tesla remains the most valuable car company globally, with Toyota in second place at a market cap of $292 billion [8]. - Analysts from Morgan Stanley have identified potential catalysts for recovery, including the introduction of Tesla's robotaxi and further developments with the Optimus humanoid robot [9].