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

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.

EU Moderates Emissions While Sustaining Economic Momentum

The European Union witnessed a modest decline in greenhouse gas emissions in the second quarter of 2025, as reported by Eurostat. Emissions across the EU registered at 772 million tonnes of CO₂-equivalents, marking a 0.4 percent reduction from 775 million tonnes in the same period of 2024. Concurrently, the EU’s gross domestic product rose by 1.3 percent, reinforcing the ongoing decoupling between economic growth and environmental impact.

Sector-By-Sector Performance

Within the broader statistics on emissions by economic activity, the energy sector—specifically electricity, gas, steam, and air conditioning supply—experienced the most significant drop, declining by 2.9 percent. In comparison, the manufacturing sector and transportation and storage both achieved a 0.4 percent reduction. However, household emissions bucked the trend, increasing by 1.0 percent over the same period.

National Highlights And Notable Exceptions

Among EU member states, 12 reported a reduction in emissions, while 14 saw increases, and Estonia’s figures remained static. Notably, Slovenia, the Netherlands, and Finland recorded the most pronounced declines at 8.6 percent, 5.9 percent, and 4.2 percent respectively. Of the 12 countries reducing emissions, three—Finland, Germany, and Luxembourg—also experienced a contraction in GDP growth.

Dual Achievement: Environmental And Economic Goals

In an encouraging development, nine member states, including Cyprus, managed to lower their emissions while maintaining economic expansion. This dual achievement—reducing environmental impact while fostering economic activity—is a trend that has increasingly influenced EU climate policies. Other nations that successfully balanced these outcomes include Austria, Denmark, France, Italy, the Netherlands, Romania, Slovenia, and Sweden.

Conclusion

As the EU continues to navigate its climate commitments, these quarterly insights underscore a gradual yet significant shift toward balancing emissions reductions with robust economic growth. The evolving landscape highlights the critical need for sustainable strategies that not only mitigate environmental risks but also invigorate economic resilience.

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