Tesla stock
(NASDAQ: TSLA) has been on a volatile ride in recent months, experiencing
significant declines driven by multiple factors, from declining vehicle sales
to CEO Elon Musk’s controversies. Investors are left wondering, “Why is
Tesla stock down today?” as market fluctuations continue.
This
article analyze Tesla stock’s performance, financial metrics, and competitive
landscape. We will also explore Tesla stock predictions for 2025 and 2030 to
understand its future trajectory.
As of today
(Thursday), February 27, 2025, Tesla stock is trading at $290.80, reflecting a
decrease of $11.96 (3.95%) from the previous close. This price drop is part of
a broader downward trend influenced by macroeconomic conditions, slowing
demand, and increasing competition in the EV market.
Why Tesla stock price is dropping today? Source: Tradingview.com
The
declines continue for the fifth consecutive session, with the price dropping
below the psychological level of $300 and the long-term 200 EMA moving average,
which has indicated a downtrend since August 2024. Bears are currently gaining
the upper hand.
Tesla
Stock Price Movement Overview
|
Date |
Opening |
Closing |
Daily |
|
Feb 27, 2025 |
$300.12 |
$290.80 |
-3.95% |
|
Feb 26, 2025 |
$312.45 |
$302.11 |
-3.31% |
|
Feb 25, 2025 |
$320.10 |
$314.75 |
-1.67% |
Tesla stock
chart analysis suggests that the stock has been declining steadily over the
past few weeks, breaking key resistance levels and signaling a bearish trend.
Investors closely monitoring Tesla stock today are concerned about its
short-term outlook, leading to increased market volatility.
The sharp
declines have caused the market capitalization of the tech giant to shrink from
$1.4 trillion to less than $1 trillion, dropping below this psychological
threshold for the first time since November of last year.
Source: Macrotrends.net
Tesla Technical Analysis
After
breaking the key support level mentioned above, Tesla’s stock price opens the
way for a decline toward the July highs at $271. This level served as
significant resistance at the end of last year before being breached in
November when Wall Street surged following Donald Trump’s election victory. The
next support levels can be found at $213 (October lows) and $182 (August 2024
lows).
Tesla stock price technical analysis. Source: Tradingview.com
What about
resistance levels? Besides the previously mentioned $300 and the 200 EMA, the
next key resistance is at $326, corresponding to the local lows from November
and February. Beyond that, the $359 level, tested in both November and
February, serves as another critical resistance point.
|
Support |
Resistance |
|
271 – July highs, previously key |
300 – |
|
213 – October |
326 – Local lows from November and |
|
182 – August |
359 – Tested in November and |
The latest data collected by Pepperstone also shows that Tesla’s stock price has been highly volatile recently. Over the past year, it has been easier to profit from after-hours trading than during regular market hours, with 97% of gains occurring outside standard trading sessions.
Key Reasons Why Tesla
Stock Price Is Dropping
Elon Musk’s Tesla empire is falling
1. Declining
Tesla Sales in Key Markets
One of the
biggest factors influencing Tesla stock price is the sharp decline in vehicle
sales across multiple regions:
- Europe: Tesla’s sales plummeted by 45% YoY
in January 2025, with only 9,945 vehicle registrations compared to 18,161 in
January 2024. - United
States: Tesla’s
market share in the BEV (Battery Electric Vehicle) segment dropped from 59% to
45%, with a 13% YoY decline in sales. - China: Sales fell 15% YoY, reflecting
weaker demand despite Tesla’s price cuts to attract buyers.
Lower sales
have directly impacted Tesla’s revenue and profitability, leading analysts to
downgrade their Tesla stock forecasts.
2. Macroeconomic
Factors and Federal Reserve Policies
Tesla stock
price has also been affected by macroeconomic headwinds, including:
- Rising
interest rates:
Higher borrowing costs discourage consumers from financing Tesla vehicles. - Inflationary
pressures: Rising
production costs have squeezed Tesla’s profit margins. - Stock
market sell-offs:
Broader economic concerns have led to outflows from high-growth stocks,
including Tesla.
3. Financial
Performance and Earnings Concerns
Tesla’s
recent financial reports have failed to meet Wall Street expectations,
contributing to the stock’s downward trajectory. The company’s Q4 2024
earnings report showed:
- Revenue
miss: Tesla
reported $22.1 billion in revenue, falling short of the estimated $23.5 billion. - Lower
margins: The
company’s gross margin declined to 17.2%, down from 22.3% in Q4 2023. - EPS
decline: Earnings
per share (EPS) came in at $0.91, missing the $1.02 consensus estimate.
These weak
financials have led investors to question whether Tesla stock prediction 2025
remains bullish or if a prolonged downturn is likely. In Q4 2024, Tesla reported financial results that fell short of analysts’ predictions, with automotive revenue decreasing by 8% compared to the previous year and operating income plunging by 23%.
Source: Tesla
4. Competitive
Pressure in the EV Market
Tesla is no
longer the undisputed leader in the EV market. Increased competition from both
traditional automakers and emerging EV startups has negatively impacted Tesla’s
growth prospects:
- BYD: The Chinese automaker has overtaken
Tesla as the world’s largest EV manufacturer by sales volume. - Rivian
& Lucid Motors:
Premium EV startups are gaining traction, particularly in the U.S. market. - Legacy
Automakers: Ford,
GM, and Volkswagen are aggressively expanding their EV portfolios.
As
competitors introduce new models with competitive pricing and advanced
features, Tesla’s pricing power has weakened, contributing to its stock price
decline.
5. Elon
Musk’s Controversies and Leadership Distractions
- Investor
sentiment toward Tesla stock is also being impacted by Elon Musk’s actions
outside the company. Concerns include: - Longtime
Tesla shareholder Ross Gerber claims Musk “doesn’t work at Tesla
anymore” with his attention divided across SpaceX, xAI, X (formerly
Twitter), and government efficiency efforts. - Musk has
been spending considerable time in Washington, D.C., managing Trump’s
Department of Government Efficiency (DOGE). - His extreme
political views and activism have spurred protests across various markets,
including demonstrations at Tesla’s retail locations and service centers. - Musk’s
close association with President Donald Trump has created polarizing
perceptions of the Tesla brand, with some consumers boycotting the company.
Tesla Stock Prediction
2025 and Long-Term Outlook
Analysts
have varying perspectives on Tesla’s stock forecast for the remainder of 2025:
|
Analyst/Firm |
Price |
View |
|
JPMorgan |
$135 |
Bearish – representing potential |
|
Ross Gerber |
Predicts 50% |
Bearish – cites valuation, FSD |
|
ARK Invest |
$3,000 |
Extremely bullish – based on |
|
Morningstar |
$250 |
Bearish – views stock as |
|
Analysts |
$300-$528 |
Mixed – influenced by production |
Despite the
current downturn, some analysts believe Tesla stock forecast for 2025 remains
promising, citing potential catalysts such as:
- New
vehicle models:
Tesla is expected to launch next-generation vehicles, including an affordable
EV model by 2026. - Full
Self-Driving (FSD) advancements: Improvements in Tesla’s autonomous driving technology could boost
revenue. - Energy
business growth:
Tesla’s expansion in solar energy and battery storage could provide
diversification beyond EVs.
Tesla Stock Price
Prediction 2030
Looking
further ahead, Tesla stock price prediction for 2030 varies widely among
analysts:
|
Analyst |
2030 Price |
Growth |
|
Goldman Sachs |
$1,200 |
High growth |
|
Morgan |
$850 |
Moderate |
|
ARK Invest |
$2,500 |
Bullish |
While some
forecasts remain optimistic, much will depend on Tesla’s ability to maintain
its competitive edge in an increasingly crowded EV market.
Conclusion: Should
Investors Buy Tesla Stock Now?
Tesla
stock’s recent decline has been driven by a combination of factors, including
weaker sales, macroeconomic challenges, increased competition, and investor
concerns over Elon Musk’s leadership. While short-term headwinds persist,
Tesla’s long-term potential remains strong, particularly in autonomous driving
and energy solutions.
For
investors considering Tesla stock today, it’s essential to weigh both risks and
opportunities. As Tesla stock price prediction 2025 and 2030 vary, potential
buyers should focus on Tesla stock forecasts, market trends, and key financial
indicators before making investment decisions.
Key Takeaways:
- Tesla stock price is down due
to declining sales, competition, and financial performance concerns. - Macroeconomic factors,
including interest rate hikes, have pressured growth stocks like Tesla. - Analysts have mixed Tesla stock
predictions for 2025, with long-term potential remaining strong.
Investors
can make well-informed decisions in this evolving market landscape by staying
informed and tracking Tesla stock charts, market updates, and expert insights.
Tesla Stock News, FAQ
Why is Tesla stock down
today?
Tesla stock
is down today due to a combination of factors including slowing vehicle sales
across key markets, concerns about CEO Elon Musk’s divided attention,
disappointing Q4 2024 financial results, and increasing competition in the EV
market. The stock has broken below key technical support levels, triggering
additional selling pressure as investors reassess Tesla’s growth prospects and
premium valuation in light of these challenges.
How much has Tesla stock
price dropped in 2025?
Tesla stock
has plummeted approximately 25% year-to-date in 2025, making it the weakest
performer among the Magnificent 7 tech stocks. On February 25, 2025, Tesla
shares dropped by more than 8% in a single day, pushing its market
capitalization below $1 trillion for the first time since November 2024. This
represents a 35% decline from its peak closing price reached in December 2024.
What is causing Tesla
stock price to go down?
The primary
factors causing Tesla stock price to go down include: first annual decline in
EV sales after years of growth (down 45% in Europe and 15% in China), shrinking
profit margins (automotive gross margins fell to mid-teens in Q4 2024), Elon
Musk’s divided attention across multiple companies and political activities,
intensifying competition from traditional automakers and Chinese EV
manufacturers like BYD, and concerns about the company’s high valuation
relative to financial performance.
What is the Tesla stock
price prediction for 2025?
Analyst
predictions for Tesla stock in 2025 vary widely. JPMorgan maintains a bearish
price target of $135 (60% downside), while ARK Invest has an extremely bullish
outlook with a $3,000 target based on potential autonomous driving success.
Morningstar values Tesla at $250, viewing current prices as significantly
overvalued. The analyst consensus ranges from $300-$528, with predictions
heavily dependent on Tesla’s ability to return to growth, successfully launch
its robotaxi service, and maintain its technological edge.
Is Tesla stock a good buy
at current prices?
Whether
Tesla stock is a good buy depends on your investment horizon and risk
tolerance. Cautious investors might wait for further price corrections given
Tesla’s still-elevated valuation (forward P/E ratio of 118x), declining sales,
and technical indicators suggesting continued downward momentum. However,
long-term investors who believe in Tesla’s autonomous driving vision, energy
business growth, and ability to launch more affordable vehicles might view the
current price drop as a buying opportunity, especially if they believe Tesla
can achieve its guided 25% auto growth in 2025.
When will Tesla stock
price recover?
Tesla stock
price recovery will likely depend on several key catalysts: successful launch
of the robotaxi fleet planned for June 2025 in Austin, return to vehicle sales
growth as promised by management, introduction of a more affordable vehicle
model, improvement in automotive gross margins, and potentially a refocusing of
Elon Musk’s attention on Tesla operations. Technical analysts suggest that
breaking above the $430 resistance level would be a significant indicator of
recovery momentum, though the stock faces substantial resistance at its 52-week
high of $489.
Tesla stock
(NASDAQ: TSLA) has been on a volatile ride in recent months, experiencing
significant declines driven by multiple factors, from declining vehicle sales
to CEO Elon Musk’s controversies. Investors are left wondering, “Why is
Tesla stock down today?” as market fluctuations continue.
This
article analyze Tesla stock’s performance, financial metrics, and competitive
landscape. We will also explore Tesla stock predictions for 2025 and 2030 to
understand its future trajectory.
As of today
(Thursday), February 27, 2025, Tesla stock is trading at $290.80, reflecting a
decrease of $11.96 (3.95%) from the previous close. This price drop is part of
a broader downward trend influenced by macroeconomic conditions, slowing
demand, and increasing competition in the EV market.
Why Tesla stock price is dropping today? Source: Tradingview.com
The
declines continue for the fifth consecutive session, with the price dropping
below the psychological level of $300 and the long-term 200 EMA moving average,
which has indicated a downtrend since August 2024. Bears are currently gaining
the upper hand.
Tesla
Stock Price Movement Overview
|
Date |
Opening |
Closing |
Daily |
|
Feb 27, 2025 |
$300.12 |
$290.80 |
-3.95% |
|
Feb 26, 2025 |
$312.45 |
$302.11 |
-3.31% |
|
Feb 25, 2025 |
$320.10 |
$314.75 |
-1.67% |
Tesla stock
chart analysis suggests that the stock has been declining steadily over the
past few weeks, breaking key resistance levels and signaling a bearish trend.
Investors closely monitoring Tesla stock today are concerned about its
short-term outlook, leading to increased market volatility.
The sharp
declines have caused the market capitalization of the tech giant to shrink from
$1.4 trillion to less than $1 trillion, dropping below this psychological
threshold for the first time since November of last year.
Source: Macrotrends.net
Tesla Technical Analysis
After
breaking the key support level mentioned above, Tesla’s stock price opens the
way for a decline toward the July highs at $271. This level served as
significant resistance at the end of last year before being breached in
November when Wall Street surged following Donald Trump’s election victory. The
next support levels can be found at $213 (October lows) and $182 (August 2024
lows).
Tesla stock price technical analysis. Source: Tradingview.com
What about
resistance levels? Besides the previously mentioned $300 and the 200 EMA, the
next key resistance is at $326, corresponding to the local lows from November
and February. Beyond that, the $359 level, tested in both November and
February, serves as another critical resistance point.
|
Support |
Resistance |
|
271 – July highs, previously key |
300 – |
|
213 – October |
326 – Local lows from November and |
|
182 – August |
359 – Tested in November and |
The latest data collected by Pepperstone also shows that Tesla’s stock price has been highly volatile recently. Over the past year, it has been easier to profit from after-hours trading than during regular market hours, with 97% of gains occurring outside standard trading sessions.
Key Reasons Why Tesla
Stock Price Is Dropping
Elon Musk’s Tesla empire is falling
1. Declining
Tesla Sales in Key Markets
One of the
biggest factors influencing Tesla stock price is the sharp decline in vehicle
sales across multiple regions:
- Europe: Tesla’s sales plummeted by 45% YoY
in January 2025, with only 9,945 vehicle registrations compared to 18,161 in
January 2024. - United
States: Tesla’s
market share in the BEV (Battery Electric Vehicle) segment dropped from 59% to
45%, with a 13% YoY decline in sales. - China: Sales fell 15% YoY, reflecting
weaker demand despite Tesla’s price cuts to attract buyers.
Lower sales
have directly impacted Tesla’s revenue and profitability, leading analysts to
downgrade their Tesla stock forecasts.
2. Macroeconomic
Factors and Federal Reserve Policies
Tesla stock
price has also been affected by macroeconomic headwinds, including:
- Rising
interest rates:
Higher borrowing costs discourage consumers from financing Tesla vehicles. - Inflationary
pressures: Rising
production costs have squeezed Tesla’s profit margins. - Stock
market sell-offs:
Broader economic concerns have led to outflows from high-growth stocks,
including Tesla.
3. Financial
Performance and Earnings Concerns
Tesla’s
recent financial reports have failed to meet Wall Street expectations,
contributing to the stock’s downward trajectory. The company’s Q4 2024
earnings report showed:
- Revenue
miss: Tesla
reported $22.1 billion in revenue, falling short of the estimated $23.5 billion. - Lower
margins: The
company’s gross margin declined to 17.2%, down from 22.3% in Q4 2023. - EPS
decline: Earnings
per share (EPS) came in at $0.91, missing the $1.02 consensus estimate.
These weak
financials have led investors to question whether Tesla stock prediction 2025
remains bullish or if a prolonged downturn is likely. In Q4 2024, Tesla reported financial results that fell short of analysts’ predictions, with automotive revenue decreasing by 8% compared to the previous year and operating income plunging by 23%.
Source: Tesla
4. Competitive
Pressure in the EV Market
Tesla is no
longer the undisputed leader in the EV market. Increased competition from both
traditional automakers and emerging EV startups has negatively impacted Tesla’s
growth prospects:
- BYD: The Chinese automaker has overtaken
Tesla as the world’s largest EV manufacturer by sales volume. - Rivian
& Lucid Motors:
Premium EV startups are gaining traction, particularly in the U.S. market. - Legacy
Automakers: Ford,
GM, and Volkswagen are aggressively expanding their EV portfolios.
As
competitors introduce new models with competitive pricing and advanced
features, Tesla’s pricing power has weakened, contributing to its stock price
decline.
5. Elon
Musk’s Controversies and Leadership Distractions
- Investor
sentiment toward Tesla stock is also being impacted by Elon Musk’s actions
outside the company. Concerns include: - Longtime
Tesla shareholder Ross Gerber claims Musk “doesn’t work at Tesla
anymore” with his attention divided across SpaceX, xAI, X (formerly
Twitter), and government efficiency efforts. - Musk has
been spending considerable time in Washington, D.C., managing Trump’s
Department of Government Efficiency (DOGE). - His extreme
political views and activism have spurred protests across various markets,
including demonstrations at Tesla’s retail locations and service centers. - Musk’s
close association with President Donald Trump has created polarizing
perceptions of the Tesla brand, with some consumers boycotting the company.
Tesla Stock Prediction
2025 and Long-Term Outlook
Analysts
have varying perspectives on Tesla’s stock forecast for the remainder of 2025:
|
Analyst/Firm |
Price |
View |
|
JPMorgan |
$135 |
Bearish – representing potential |
|
Ross Gerber |
Predicts 50% |
Bearish – cites valuation, FSD |
|
ARK Invest |
$3,000 |
Extremely bullish – based on |
|
Morningstar |
$250 |
Bearish – views stock as |
|
Analysts |
$300-$528 |
Mixed – influenced by production |
Despite the
current downturn, some analysts believe Tesla stock forecast for 2025 remains
promising, citing potential catalysts such as:
- New
vehicle models:
Tesla is expected to launch next-generation vehicles, including an affordable
EV model by 2026. - Full
Self-Driving (FSD) advancements: Improvements in Tesla’s autonomous driving technology could boost
revenue. - Energy
business growth:
Tesla’s expansion in solar energy and battery storage could provide
diversification beyond EVs.
Tesla Stock Price
Prediction 2030
Looking
further ahead, Tesla stock price prediction for 2030 varies widely among
analysts:
|
Analyst |
2030 Price |
Growth |
|
Goldman Sachs |
$1,200 |
High growth |
|
Morgan |
$850 |
Moderate |
|
ARK Invest |
$2,500 |
Bullish |
While some
forecasts remain optimistic, much will depend on Tesla’s ability to maintain
its competitive edge in an increasingly crowded EV market.
Conclusion: Should
Investors Buy Tesla Stock Now?
Tesla
stock’s recent decline has been driven by a combination of factors, including
weaker sales, macroeconomic challenges, increased competition, and investor
concerns over Elon Musk’s leadership. While short-term headwinds persist,
Tesla’s long-term potential remains strong, particularly in autonomous driving
and energy solutions.
For
investors considering Tesla stock today, it’s essential to weigh both risks and
opportunities. As Tesla stock price prediction 2025 and 2030 vary, potential
buyers should focus on Tesla stock forecasts, market trends, and key financial
indicators before making investment decisions.
Key Takeaways:
- Tesla stock price is down due
to declining sales, competition, and financial performance concerns. - Macroeconomic factors,
including interest rate hikes, have pressured growth stocks like Tesla. - Analysts have mixed Tesla stock
predictions for 2025, with long-term potential remaining strong.
Investors
can make well-informed decisions in this evolving market landscape by staying
informed and tracking Tesla stock charts, market updates, and expert insights.
Tesla Stock News, FAQ
Why is Tesla stock down
today?
Tesla stock
is down today due to a combination of factors including slowing vehicle sales
across key markets, concerns about CEO Elon Musk’s divided attention,
disappointing Q4 2024 financial results, and increasing competition in the EV
market. The stock has broken below key technical support levels, triggering
additional selling pressure as investors reassess Tesla’s growth prospects and
premium valuation in light of these challenges.
How much has Tesla stock
price dropped in 2025?
Tesla stock
has plummeted approximately 25% year-to-date in 2025, making it the weakest
performer among the Magnificent 7 tech stocks. On February 25, 2025, Tesla
shares dropped by more than 8% in a single day, pushing its market
capitalization below $1 trillion for the first time since November 2024. This
represents a 35% decline from its peak closing price reached in December 2024.
What is causing Tesla
stock price to go down?
The primary
factors causing Tesla stock price to go down include: first annual decline in
EV sales after years of growth (down 45% in Europe and 15% in China), shrinking
profit margins (automotive gross margins fell to mid-teens in Q4 2024), Elon
Musk’s divided attention across multiple companies and political activities,
intensifying competition from traditional automakers and Chinese EV
manufacturers like BYD, and concerns about the company’s high valuation
relative to financial performance.
What is the Tesla stock
price prediction for 2025?
Analyst
predictions for Tesla stock in 2025 vary widely. JPMorgan maintains a bearish
price target of $135 (60% downside), while ARK Invest has an extremely bullish
outlook with a $3,000 target based on potential autonomous driving success.
Morningstar values Tesla at $250, viewing current prices as significantly
overvalued. The analyst consensus ranges from $300-$528, with predictions
heavily dependent on Tesla’s ability to return to growth, successfully launch
its robotaxi service, and maintain its technological edge.
Is Tesla stock a good buy
at current prices?
Whether
Tesla stock is a good buy depends on your investment horizon and risk
tolerance. Cautious investors might wait for further price corrections given
Tesla’s still-elevated valuation (forward P/E ratio of 118x), declining sales,
and technical indicators suggesting continued downward momentum. However,
long-term investors who believe in Tesla’s autonomous driving vision, energy
business growth, and ability to launch more affordable vehicles might view the
current price drop as a buying opportunity, especially if they believe Tesla
can achieve its guided 25% auto growth in 2025.
When will Tesla stock
price recover?
Tesla stock
price recovery will likely depend on several key catalysts: successful launch
of the robotaxi fleet planned for June 2025 in Austin, return to vehicle sales
growth as promised by management, introduction of a more affordable vehicle
model, improvement in automotive gross margins, and potentially a refocusing of
Elon Musk’s attention on Tesla operations. Technical analysts suggest that
breaking above the $430 resistance level would be a significant indicator of
recovery momentum, though the stock faces substantial resistance at its 52-week
high of $489.
