The stock market's tumble has taken an outsize toll on technology stocks, particularly high-flyers like artificial intelligence stocks and stocks comprising the so-called magnificent seven, like Tesla.
The S&P 500 tumbled 2.7%, an eye-catching drop. Worse, though, was the 3.9% drubbing in the tech-laden Nasdaq 100.
Of course, that only tells some of the story. Individual stocks like Tesla were especially hard-hit. Tesla's stock price fell over 15%, a truly massive move for a stock of its size.
Deliveries drama delivers Tesla stock a drubbing
Tesla (TSLA) bears have gained control for a good reason.
The electric vehicle maker pioneered luxury and performance-oriented EVs, but many of its core customers have bristled at mercurial CEO Elon Musk's decision to become a political lightning rod.
Related: Top analyst reworks Tesla stock price target amid global sales slump
After spending hundreds of millions to help President Trump secure the White House, Musk was appointed to run the Department of Government Efficiency (DOGE), which is tasked with rooting out wasteful government spending.
Musk's decision to get political appears to have alienated many would-be Tesla buyers, not just in the United States.
In Europe, registrations fell 76% in Germany, 55% in Italy, and nearly 50% in Sweden. Tesla's sales collapsed 49% in China in February, prompting China Passenger Car Association Secretary General Cui Dongshu to highlight the "unavoidable risk" from Musk's "personal glory."
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The U.S. has seen a similar but smaller drop-off. In Q4, KBB's electric vehicle sales report showed that Tesla unit sales fell by 5.6% from one year ago.
The slowdown in demand appears to be a Tesla specific problem. For example, in Germany, total EV sales rose 30.8%. In the U.S., KBB estimates EV and FCEV sales grew by 7.3% in Q4.
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This dynamic is leading Wall Street analysts to ratchet back their full-year delivery estimates, which is largely responsible for Tesla's steep sell-off today.
Tesla was expected to deliver around 415,000 vehicles in Q1. UBS now believes it will deliver 367,000 units, far below the 495,570 deliveries in Q4 2024.
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