Tesla Stock Faces 'Demand/Brand Issues' In US, Competition In China: Analyst Lowers Delivery Estimates

Core Viewpoint - Tesla is experiencing weakened demand in key markets, leading to lowered delivery estimates and price targets by analysts [1][2][4]. Delivery Estimates - Goldman Sachs analyst Mark Delaney has reduced Tesla's vehicle delivery assumptions for the second quarter to a range of 335,000 to 395,000, with a base case of 365,000, down from a previous estimate of 410,000 [3]. - Year-to-date deliveries in the U.S. are down mid-teens percentage-wise year-over-year, while registration data in Europe shows a 50% year-over-year decline for April [2][3]. Market Analysis - The analyst suggests that demand and brand issues may be affecting Tesla's performance in the U.S. and European markets, while competition and product cycle timing could be impacting demand in China [4]. - The estimated delivery split for 2024 is 30% from the U.S., 37% from China, 18% from Europe, and 10% from other regions [4]. Price Target and Valuation - The price target for Tesla has been lowered from $295 to $285, with a downside valuation scenario suggesting a potential drop to $150 [1][4]. - Tesla's stock is currently trading at $300.54, reflecting a year-to-date decline of 21.8% in 2025 [5].