Story
Tesla Stock Slides as Wall Street Cuts Delivery Forecasts on Weak China, US Data
Summary
Tesla shares fell over 3.5% after JPMorgan cut its price target and other analysts lowered Q3 delivery estimates, citing weakening vehicle registration data in key markets and a less favorable U.S. regulatory shift.
Shares of Tesla Inc. (TSLA) fell 3.5% to $359.27 in mid-day trading, hit by a combination of negative analyst commentary, signs of weakening demand in key markets, and an unfavorable U.S. policy shift for electric vehicle makers.
Wall Street Sours on Q3 Deliveries
The immediate catalyst for the sell-off was a fresh wave of downward revisions to third-quarter delivery estimates from major financial institutions ahead of Tesla's official report expected on October 2. JPMorgan analyst Rajat Gupta lowered his price target on the stock to $415 from $445, though he maintained a Neutral rating.
Gupta's note, along with a trimmed Q3 forecast from Goldman Sachs, pointed to softer-than-expected vehicle registration data for August in Tesla's two most critical markets. The data indicated a potential slowdown in consumer demand:
- China: New car registrations fell by approximately 13%.
- United States: New car registrations declined by roughly 4%.
AdRegulatory and Market Headwinds
Adding to the pressure, the U.S. government finalized relaxed fuel economy standards. The new rules ease the 2031 target to 34.9 miles per gallon, a significant reduction from the previous administration's goal of 50.4 mpg. This policy change lessens the regulatory pressure on traditional automakers to accelerate their EV transition, potentially softening a structural tailwind that has benefited Tesla.
A broader market downturn provided no support for the stock, as both the S&P 500 and the Nasdaq Composite traded lower. The sell-off was particularly sharp in the technology sector, amplifying the negative sentiment around high-growth names like Tesla. The day's trading action comes amid lingering concerns over the company's fundamentals, including a negative free cash flow in Q2 2026 and a capital expenditure plan exceeding $25 billion for the year.
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