Tesla Stock Target Cut as Q1 Delivery Challenges Emerge

Investment firm Baird lowers Tesla's price target to $370, citing declining sales in key markets and Model Y production downtime.

Tesla's stock dropped 6.65% to $260.50 following Baird's reduction of its price target from $440 to $370, reflecting concerns over Q1 delivery performance.
Sales in China fell sharply in February, with a 49% year-over-year decline and a 51.5% drop from January, marking the lowest monthly total since August 2022.
European sales also saw significant declines, with January sales in key markets like Germany, France, and Italy falling 76%, 26%, and 24%, respectively.
The Model Y factory retooling, aimed at refreshing the vehicle, has created short-term production challenges, further impacting delivery estimates for Q1 2025.
Despite near-term concerns, Baird maintains a long-term optimistic outlook on Tesla, citing its leadership in real-world AI and projected growth potential.