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Tesla’s Troubles Deepen as Wall Street Slashes Forecasts and Stock Crashes Again

by THEFUTURE.TEAM
March 18, 2025

Tesla’s stock took another hit on Monday, plunging nearly 5% to $238, making it the worst-performing stock among S&P 500 companies valued over $100 billion. While the broader market continued its recovery, Tesla’s downward spiral intensified, driven by weakening sales, geopolitical risks, and declining brand perception.

Wall Street Turns On Tesla

Investment firm Mizuho cut its price target for Tesla by $85, bringing it down to $430, while slashing its 2025 vehicle delivery forecast from 2.3 million to 1.8 million—a 20% drop. The revision comes amid:

  • Plunging sales in key markets: U.S. sales fell 2%, China sales collapsed 49%, and German sales plunged 76%, even as local EV markets grew significantly.
  • Intensifying competition: Chinese automakers, buoyed by aggressive pricing and government incentives, are rapidly eroding Tesla’s dominance.
  • A fractured brand: Tesla’s reputation is suffering, particularly in Europe, where Elon Musk’s political views have alienated consumers.

Mizuho’s downgrade aligns with other Wall Street powerhouses, including Goldman Sachs, JPMorgan, and UBS, all of which have lowered their expectations for Tesla’s future performance.

A Brand In Crisis?

JPMorgan analysts issued a stark warning last week: “We can hardly find an analog in the history of the automotive industry where a brand has lost so much value in such a short period.” Tesla’s weakening brand perception in the U.S. and Europe is being compounded by Musk’s increasingly public political stance, particularly in Germany, where Tesla’s market share has collapsed.

Adding to Tesla’s challenges, the Trump administration’s aggressive tariff policies are now threatening its core business. Tesla recently urged the U.S. Trade Representative to reconsider the timeline of tariffs, warning that certain key EV components are difficult or impossible to source domestically.

The Big Picture: A Tumbling Stock, A Shrinking Fortune

Tesla’s stock has now lost 41% of its value since the start of the year, making it the second-biggest loser on the S&P 500. Despite Monday’s drop, Tesla shares are still up 7% from last week, when the company suffered its worst one-day decline in over four years—a staggering 15% plunge amid fears of economic instability.

For Elon Musk, the financial blow has been severe. While he remains the world’s richest person with a net worth of $329 billion, his fortune has shrunk by more than $130 billion since Tesla’s stock peaked at $480 per share in December.

What’s Next For Tesla?

Tesla’s future now hinges on multiple fronts—from rebuilding its brand and stabilizing global sales to navigating an increasingly hostile regulatory and economic environment. With Wall Street turning bearish, competition heating up, and Musk’s political entanglements adding uncertainty, Tesla’s next moves could determine whether this is a temporary setback or the start of a long-term decline.

Cyprus’ Economic Resilience Affirmed: Fitch Confirms ‘A-‘ Rating Amid Fiscal Strength

by THEFUTURE.TEAM
May 24, 2025


Strong Fiscal Fundamentals and Robust Economic Growth

The international credit ratings agency Fitch has affirmed Cyprus’ long-term rating at A- with a stable outlook. This decision reflects the nation’s strong public finances, a significant reduction in debt levels, and steady economic growth. Officials at the finance ministry welcomed the move, describing it as a robust vote of confidence in the government’s prudent economic policies.

Notable Budget Surpluses and Debt Reduction

Fitch highlights Cyprus’ high primary budget surplus, projected at 4.3% of GDP for 2024, alongside a dramatic drop in public debt from 73.6% of GDP in 2023 to 65.3% by year-end. The surplus soared to 5.6%, marking the highest level in nearly two decades, largely due to rising revenues and disciplined spending. The agency forecasts continuous improvement with debt falling further to 52.6% of GDP in 2026 and potentially nearing 45% by 2030, assuming current trends persist.

Economic Performance and Labor Market Strength

Cyprus’ economy is projected to grow at 3% for both 2025 and 2026, following a 3.4% expansion in 2024. A robust services sector and a healthy labor market are propelling this growth, with employment rising by 2% in 2024 and unemployment declining to 4.5%, close to record lows.

Market Vulnerabilities and External Challenges

Despite these positive developments, Fitch underscored persistent vulnerabilities, including a high current account deficit — estimated at around 7% of GDP over the coming years. This deficit, among the highest in the EU, is offset by sustained foreign direct investment (FDI) flowing into a diverse range of sectors. Additionally, while Cyprus’ banking system remains stable with a top-tier CET1 ratio of 24.5% and declining non-performing loans, long-term risks persist due to governance issues relative to other A-rated peers and exposure to regional geopolitical tensions.

Outlook and Policy Implications

Although Fitch’s model initially rated Cyprus at A, external risks necessitated a one-notch reduction. Future upgrades will hinge on continued debt reduction and narrowing the external deficit. Conversely, a downturn in public finances or a severe external shock could precipitate a downgrade. The finance ministry stated that the report is a testament to Cyprus’ steady economic trajectory, highlighting the ongoing commitment to responsible fiscal management as essential for bolstering both competitiveness and stability.

In conclusion, the agency’s assessment reinforces Cyprus’ sound economic fundamentals, while also flagging areas that require ongoing vigilance. As the government continues to implement strategic economic reforms, the outlook remains cautiously optimistic amid the broader global economic uncertainties.


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