Tesla (NASDAQ:TSLA) shares plummeted over 9% on Monday, hitting their lowest level since the day before the 2024 U.S. presidential election.
The drop comes amid a new bearish outlook from Wall Street, with the stock now down 50% from its record closing high of $479 on December 17.
UBS analysts lowered their price target for Tesla from $259 to $225, citing reduced delivery forecasts for the first quarter.
They attributed the downward revision to softer demand for Tesla's Model 3 and Model Y vehicles.
UBS now expects the company to deliver 367,000 cars in the first quarter, down from an initial estimate of 437,000 after Tesla's fourth-quarter results in late January.
The firm projects a 5% year-over-year decline in deliveries, with a sharp 26% drop compared to the previous quarter.
UBS also highlighted that its data indicated low delivery times for the Model 3 and Model Y—generally within two weeks—across key markets, signaling weaker demand for the electric vehicles.
Additionally, Tesla's performance in China added to the pressure, as shipments in the region fell 49% in February, marking the lowest levels in almost three years.
With Monday's decline, Tesla has now erased all of its gains since the 2024 election, adding to the ongoing unwind of the "Trump trade" that has been a feature of recent market movements.
Tesla's stock has fallen approximately 18% since the beginning of March alone.