Tesla stock was jittery in early trade on Thursday, declining more than 2% as fresh analyst commentary and new global sales data pointed to broad-based weakness in October deliveries.
Shares traded around the 2% lower mark after a five-day stretch of volatility driven by concerns over demand, competitive pressures, and renewed scrutiny of Tesla’s long-term growth catalysts.
Analysts remain cautious on Tesla stock
Truist Securities reiterated its Hold rating on Tesla (NASDAQ: TSLA) with a $406 price target, noting that while shareholder approval of CEO Elon Musk’s equity compensation package removes uncertainty about his continued leadership, major questions remain about the company’s next phase of growth.
The firm welcomed the vote’s outcome, saying it eliminates the risk that Musk could shift his attention toward developing physical AI products at xAI, his separate venture.
Yet Truist cautioned that Tesla’s key future technologies—including Full Self-Driving (FSD), robotaxis, and the Optimus humanoid robot—are still far from being meaningful revenue contributors.
The analysts described Tesla’s current FSD capabilities as “impressive, but not yet working as expected,” adding that commercial-grade products may be further out than investors anticipate.
Fresh delivery data amplified concerns.
Wells Fargo analyst Colin Langan reported that October deliveries across the United States, Europe, South Korea, and China are trending down 23% year-over-year, 54% month-over-month, and 9% year-to-date.
Langan described the weakness as “widespread,” noting that North America appeared “most benign” among the four regions tracked.
Wells Fargo maintained its Underweight rating and $120 price target, emphasising Tesla’s deteriorating demand signals.
China sales hit the lowest level in three years
Tesla’s performance in China—the world’s largest EV market—continued to deteriorate.
Sales fell to 26,006 units in October, marking the company’s weakest monthly result in three years.
Deliveries dropped 35.8% year-over-year, declining sharply from 71,525 units in September, when the company began deliveries of its Model Y L, a longer-wheelbase, six-seat version of its popular SUV offered exclusively in China.
Despite domestic weakness, exports of China-made Teslas rose to a two-year high of 35,491 vehicles in October, according to the China Passenger Car Association.
Even so, Tesla’s market share fell to 3.2%, down from 8.7% in September, marking its lowest share in over three years.
Tesla’s October performance in Europe also continued its negative trend.
Sales dropped across major markets, including Germany, Spain, the Netherlands, and Nordic countries, reinforcing the company’s struggles amid rising competition from both legacy automakers and Chinese EV entrants.
The decline followed similar weakness in September and highlighted the difficulty Tesla faces in sustaining sales momentum on the continent, where its model lineup is ageing and rivals are introducing new EVs at a rapid pace.
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