Tesla shares fell more than 4% on Tuesday, March 4, 2025, closing at $272.04, as new U.S. tariffs took effect and Bank of America cut its price target. BofA lowered its target from $490 to $380 but kept its rating at Neutral. The market report cited tariffs, weaker sales in key markets and concerns about brand sentiment; it did not establish that any one factor caused the decline.
What happened to Tesla stock on March 4, 2025?
Tesla shares dropped more than 4% and closed at $272.04 on Tuesday, March 4, 2025, according to Investopedia’s report updated that day. The close and analyst targets below are historical figures, not current prices or recommendations.
Why was Tesla stock under pressure?
The contemporaneous report identified several concerns investors and analysts were weighing, but did not measure their individual effects on Tesla’s share price.
- Tariff exposure: Bank of America analysts said the new U.S. tariffs “pose significant risk” to North American automakers, including Tesla. This was an analyst assessment of risk, not a calculation of Tesla’s realized tariff costs.
- China sales: Tesla China-made vehicle sales fell 49.2% year over year in February 2025, Investopedia reported, citing Reuters’ account of China Passenger Car Association data. The figure describes that month’s year-over-year comparison; it does not establish a continuing trend.
- European sales and brand sentiment: The report also cited falling European sales and the possibility that sentiment toward Tesla’s brand was weakening in connection with CEO Elon Musk’s role in the Trump administration. It did not quantify either factor’s effect on demand or the stock.
Which tariffs took effect that day?
Investopedia’s contemporaneous tariff report said that, on March 4, 2025, the United States put 25% tariffs on goods from Canada and Mexico and an additional 10% tariff on goods from China. The article also reported Canada’s response: 25% tariffs on C$30 billion worth of U.S. goods, with measures covering another C$125 billion scheduled for 21 days later. These are the measures described in that March 2025 report, not a statement of current tariff policy.
Do these 3 things before closing this tab:
1Repair Windows errors before they cause bigger problems2Scan for outdated or missing drivers - takes under a minute3Clear out junk files and repair common Windows errors#1 Best Overall
- Made of zinc alloy with ABS plastic parts
- 5.9 inch x 2.2 inch x 1.8 inch(size)
- The two sides of doors could be opened,front and back covercould be opened too
- You can pull back the car,then it can move forwards with Lights and Sound
- Very suitable as children 4 years and up toys for birthday,Christmas gift, new year. Also it can be a gift for your boyfriend
The available report does not specify how much Tesla would pay in additional tariffs, isolate the company’s exposure by product or supply chain, or show that tariffs alone drove the share-price decline.
Why did Bank of America lower its Tesla price target?
Bank of America lowered its target to $380 from $490 and reiterated its Neutral rating, according to Investopedia. Its concerns included tariff uncertainty, sales weakness and possible brand-sentiment deterioration. A price target is an analyst’s estimate, not a guaranteed future price; the reported target cut does not by itself identify how much each concern contributed to the change.
Rank #2
- Made of zinc alloy with ABS plastic parts
- 5.9 inch x 2.2 inch x 1.8 inch(size)
- The two sides of doors could be opened,front and back covercould be opened too
- You can pull back the car,then it can move forwards with Lights and Sound
- Very suitable as children 4 years and up toys for birthday,Christmas gift, new year. Also it can be a gift for your boyfriend
How did Morgan Stanley’s view differ?
Morgan Stanley offered a more optimistic dated view shortly before the decline. In a March 3, 2025 report, it named Tesla its U.S. auto-sector “Top Pick,” assigned an Overweight rating and set a $430 target, as reported by Investopedia.
Analyst Adam Jonas framed the thesis around Tesla’s potential beyond vehicle manufacturing, describing it as “a company in the transition from an automotive ‘pure play’ to a highly diversified play on AI and robotics.” In the separate discussion of deliveries reported by Investopedia, Jonas characterized Tesla’s lower-than-expected deliveries as “not particularly narrative changing.” These were Morgan Stanley’s views at the time, not evidence that the transition or anticipated outcomes had already occurred.
Recommended Free Tools
Rank #3
- Made of zinc alloy with ABS plastic parts
- 5.9 inch x 2.2 inch x 1.8 inch(size)
- The two sides of doors could be opened,front and back covercould be opened too
- You can pull back the car,then it can move forwards with Lights and Sound
- Very suitable as children 4 years and up toys for birthday,Christmas gift, new year. Also it can be a gift for your boyfriend
| Firm and date | Rating and target | Emphasis reported at the time |
|---|---|---|
| Bank of America, reported March 4, 2025 | Neutral; target reduced from $490 to $380 | Tariff risk, sales concerns and possible brand-sentiment weakness |
| Morgan Stanley, report dated March 3, 2025 | Overweight; $430 target; U.S. auto-sector Top Pick | Potential evolution from automaker toward AI and robotics |
The two targets reflect different dated analyst judgments and theses. They are not verified outcomes, and neither should be read as a current view.
Quick Recap
Rank #4
![Matchbox Tesla Model Y, 70 Years 89/100 [White]](https://m.media-amazon.com/images/I/51XQmx0TiDL._SL160_.jpg)
- Toy Vehicle Form: Car
- Theme: Car
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
