Tesla stock ( TSLA ) fell nearly 5% Monday, continuing a rough few weeks — and start to 2025 — for the automaker. Shares of the EV maker dropped 8% last week alone, and have now fallen for eight straight weeks, with the company shedding hundreds of billions in market value.
Driving the news today was a report out of China, one of the company’s most important regions. Per the company’s website, Tesla is offering a free trial of its Full Self-Driving (FSD) autonomous software on the mainland, but it's not enough to quell investors' fears, however.
The deal — which runs from March 17 through April 16, isn’t just limited to new buyers but is open to any owner whose Tesla is equipped with the latest hardware computer, software, and mapping data, according to a Tesla statement to its users, reported by Reuters .
Tesla’s issues with self-driving in China are well known. The company has struggled with data collection from the vehicles in China because of the government’s data privacy laws, which prevent Tesla from sending data collected in China to its servers in the US.
During Tesla’s Q1 earnings call , when asked about the FSD rollout in China, CEO Elon Musk said difficulties remain. "We do have some challenges because ... they currently don’t allow us to transfer training video outside of China. And then the US government won’t let us do training in China. So, we’re in a bit of a bind there. It’s like a quandary.”
Tesla is working with Chinese partners like Baidu to improve its mapping data by integrating Baidu’s mapping information along with lane marking and traffic signal locations into its FSD, Reuters reported last week.
This development is a marked change for Tesla’s strategy with self-driving, which relies on visual data alone to evaluate road conditions and markings, by integrating non-visual data for use with FSD.
Tesla’s FSD is also considered less advanced than rival software seen in Chinese brands like Xiaomi, Xpeng, and others. BYD, the biggest EV brand in China, inked a deal with DeepSeek AI to co-develop new autonomous technology with its “God’s Eye” advanced driver assistance system, a major threat to Tesla.
Looking big picture, challenges in China come on top of difficulties the company is facing in Europe , as well as brand erosion Tesla is seeing in the US .
In addition to new, more cost-competitive products challenging Tesla sales, many of Tesla’s troubles stem from Musk's behavior.
As head of the White House’s controversial Department of Government Efficiency (DOGE) initiative, Musk has seen his standing slide among Americans as protests have gained steam at Tesla showrooms in the US. Musk's meddling in German and UK politics by supporting far-right parties has also hurt his standing in those regions .
Official confirmation of Tesla’s global sales will come in early April when the company reports first quarter deliveries.
JPMorgan is the latest investment bank to cut its delivery forecast for the company. Analyst Ryan Brinkman now expects Q1 deliveries of 355,000, down 8% year over year and down 28% from the 495,000 reported in Q4. Brinkman’s new estimate is substantially lower than the firm’s prior estimate of 444,000 and 15% below the Bloomberg consensus estimate of 418,000, he said.
In cutting the firm’s price target to $120 from $130 (one of the Street’s lowest), Brinkman didn’t mince words.
“We struggle to think of anything analogous in the history of the automotive industry, in which a brand has lost so much value so quickly, with perhaps the closest example being the decline in sales of Japanese and Korean brand vehicles in China in 2012 and 2017,” which stemmed from deep trade disputes, Brinkman said.
Pras Subramanian is a reporter for Yahoo Finance. You can follow him on X and on Instagram .
