Tesla’s stock has recently faced a sharp decline, dropping 15% and extending its losing streak for eight consecutive
weeks. Several factors have contributed to this downturn, including CEO Elon Musk’s political involvement, which has raised investor
concerns. Additionally, Tesla’s sales in key markets like China and Europe have significantly decreased.
Analysts have responded cautiously, lowering Tesla’s price targets due to weak sales and a dim outlook for the first
quarter. Although Tesla remains focused on AI innovations, these advancements are considered long-term prospects.
Technically, the stock has fallen below crucial support levels, with key resistance points ahead.
Overall, Tesla’s stock struggles highlight growing challenges that could impact its future performance.
Investors are closely monitoring the company’s next moves in response to these setbacks.
Introduction
Tesla, the renowned electric vehicle manufacturer led by CEO Elon Musk, has recently faced a notable downturn in its stock performance. Over the past week, Tesla’s stock has experienced a great decline, influenced by various internal and external factors.
Stock Performance Overview
As of Monday, Tesla’s stock closed 15% lower, marking its lowest point since October 2024. This decline has extended t he company’s record-breaking eight-week losing streak, making it the worst performer in the S&P 500 and the second-worst in the Nasdaq 100 during this period.
Impact of CEO’s Political Involvement
Elon Musk’s active involvement with the Trump administration has raised concerns among investors. His support for policies leading to trade conflicts with main partners such as China and the European Union has adversely impacted Tesla’s performance. Musk’s collaboration with the administration on government efficiency initiatives has also led to apprehensions about his focus on Tesla amidst his government responsibilities.
Declining Sales in Key Markets
Tesla’s sales figures have shown a downward trend in crucial markets. In February, sales in China plummeted by 51.5%,
following poor sales figures in Germany and Europe.
This decline has contributed to the overall negative sentiment surrounding the
company’s stock performance.
Analyst Downgrades and Future Outlook
Financial analysts have responded to Tesla’s recent performance with caution. UBS analyst Joseph Spak reduced Tesla’s price target and delivery expectations, excerpt a dim outlook for first-quarter earnings. While Tesla’s long-term focus remains on AI innovations like robo-taxis and humanoid robots, these developments are considered distant and already factored into current stock valuations.
Technical Analysis and Support Levels
From a technical standpoint, Tesla’s stock has fallen below its 200-week moving average, with increasing volumes indicating
larger market players’ participation in selling.
Key support levels to watch for include $215 and $165, while main resistance levels
are at $265 and $300. Monitoring these levels is crucial amid Tesla’s heightened volatility.
Conclusion
Tesla’s recent stock decline is a result of a combination of factors, including declining sales in key markets,
CEO Elon Musk’s political involvement, and cautious analyst outlooks. As the company navigates these challenges, investors
and stakeholders will nearly monitor its performance and strategic decisions in the coming months.
Note: This article is based on information available up to March 11, 2025.