Tesla's stock fell 15% on Monday, its worst trading session in more than four years and its latest continuation of its steep fall in 2025. The decline comes amid rising worries about softening demand for Tesla's electric vehicles, though CEO Elon Musk is optimistic, reassuring investors the company has a bright long-term future.

However, analysts are not as optimistic. UBS's Joseph Spak cut Tesla's delivery estimate, forecasting only 367,000 vehicles sold in Q1—16% below his prior estimate. He also forecasts Tesla's yearly sales to fall by 5% in 2025, which goes against the company's growth projections. Robert W. Baird's Ben Kallo also lowered his estimates, based on demand worries and production issues surrounding the Model Y refresh.

Tesla's woes go beyond Wall Street. In Germany, registrations fell 70% in early 2025, partly as a result of outrage over Musk's political activism. In China, Tesla was undercut by BYD, with Shanghai factory shipments falling 49% in February, its weakest showing since July 2022.