March 10 - Tesla (TSLA, Financial) remains one of the most actively traded stocks amid mounting challenges. The electric vehicle maker is grappling with lower-than-expected demand, fierce price competition, and potential tariffs.

Wall Street analysts are split on Tesla's future. Guggenheim, in particular, has reiterated a price target of $175 and warned that stock may fall 20% from the current price of $227. The firm contends that the rollout of Tesla's Full Self Driving software in China may expose deeper margin pressures, aligning the company's profitability more closely with the broader auto industry.

While revenue ticked up slightly from $25.17 billion to $25.71 billion last quarter, Teslas gross profit margin dropped from 17.6% to 16.25%. The firm's increasing scale has raised red flags that its size is starting to undercut profitability.

Additionally, Tesla's brand seems to be hurt by CEO Elon Musk's well-publicized political connections, which, by extension, are shaking confidence in investors. Though the company has been investing in robotics and artificial intelligence, prevailing market volatility and worsening geopolitical headwinds imply there are no near-term signs that the stock will soon regain momentum.

Tesla is approaching turbulence as analysts warn caution, expecting more volatility that may shake investor faith. Indeed, experts fear markets may react strongly soon.