Tesla stock collapsed 25% Thursday after the electric vehicle manufacturer reported quarterly deliveries significantly below Wall Street projections. The disappointing figures intensified investor anxiety regarding slowing EV adoption and mounting competition from established automakers.

Delivery Miss Shocks Markets

Tesla delivered 387,000 vehicles during the quarter, falling 13% short of consensus analyst estimates. Production challenges including factory upgrades and supply chain disruptions contributed to the shortfall, though demand concerns dominated investor reactions.

The miss marked Tesla's first year-over-year quarterly delivery decline since 2020. Shares touched three-year lows before recovering slightly as trading volume reached historic levels exceeding 150 million shares exchanged.

Competitive Pressure Mounts

Traditional automakers accelerated EV launches with competitive pricing and established dealership networks. Market data indicates Tesla's U.S. market share dropped below 50% for the first time as Ford, GM, and Hyundai gained traction with diverse model lineups.

Chinese manufacturers BYD and Nio expanded international presence with aggressively priced alternatives. European markets showed particular vulnerability to competitive pressure as local brands leveraged regulatory support and consumer preferences for domestic production.

Analyst Downgrades

Multiple investment banks reduced price targets following the delivery report. Goldman Sachs lowered twelve-month projections from $350 to $285, citing margin compression risks and demand uncertainty. Morgan Stanley maintained overweight ratings but acknowledged near-term headwinds.

Bullish investors emphasized Tesla's energy storage and autonomous driving potential as longer-term value drivers. However, near-term focus remained fixated on core automotive profitability and volume growth trajectories.

Musk Response and Strategy

CEO Elon Musk addressed employee concerns in internal communications, framing challenges as temporary growing pains during transition phases. Price cuts implemented throughout 2025 improved affordability but compressed margins below 17%.

The company deferred Robotaxi unveiling timelines while accelerating affordable model development. For comprehensive Tesla market analysis, follow GenzNewz.

Sources: Tesla Investor Relations, MarketWatch