Tesla (TSLA) seems to live in three worlds.
The youngest is Chief Executive Elon Musk’s entry into politics, in the U.S. and beyond, as a trusted ally of President Donald Trump and leader of the Doge campaign to slash federal spending.
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The second is the one occupied by fans of the Tesla brand and the ultimate idea of Full-Self-Driving vehicles, a critical focus of Musk for years.
The third is the stock price on Wall Street, which now seems to reflect the global competitive environment and, perhaps, investor opinion of Musk’s non-Tesla activities.
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The price lately has not been pretty, and it may not be ready yet to turn up.
Tesla shares fell 8.4% to $302.80 on Tuesday as news reports noted that registrations of Tesla vehicles in Europe were down 45% in January to just 9,945.
Tesla shares are now down 25% on the year and 38% from their 52-week high of $488.54, reached on Dec. 18, 2024.
U.S. President-elect Donald Trump and Elon Musk watch the launch of the sixth test flight of the SpaceX Starship rocket on November 19, 2024 in Brownsville, Texas. Musk leads Trump’s effort to slash the federal workforce.
The shares’ market capitalization ended the day at $974 billon. It was $1.54 trillion on Dec. 17, 2024.
Global sales data are not due until April, but the Kalshi prediction market is projecting first-quarter deliveries of 359,000, the worst quarterly performance since third-quarter 2022.
Here’s what happened in Europe; and Musk is a problem, too
Two things are happening in Europe. First is Tesla’s sales woes come as overall electric vehicle sales were up 37% year over year in January, according to the European Automobile Manufacturers Association.
A factor hurting Tesla now is that its popular Model Y midsize SUV is in the middle of a refresh, and some potential buyers might be waiting for the new model. Plus there’s more competition from new models from Volkswagen, Renault and China’s SAC Motor.
The other problem is that Musk himself has become a polarizing figure on both sides of the Atlantic, and as a result many buyers are looking to buy other EVs.
More Tesla:
Tesla treats customers in China much differently than in the U.S.Analyst revisits Tesla stock price target amid ‘balancing act’Tesla shareholders raise concerns about Elon Musk pre-earnings
Musk is, of course, the head of the U.S.’s Department of Governmental Efficiency, Trump’s controversial vehicle that’s trying to slash the federal payroll. Musk cheered conservatives and enraged opponents when he waved a chainsaw around at a conservative meeting over the weekend.
Musk’s missteps in Europe include support for Germany’s far-right Alternative for Germany Party in the recent election. He made a hand gesture at a U.S. rally that many saw as a Nazi salute. (Musk has denied the accusation.) And he has called for jailing British Prime Minister Keir Starmer.
Another issue is whether Musk, who is famously hyperactive, is stretched too thin; he also runs several businesses beyond Tesla. So far, he has resisted the idea.
A visitor looks at a Tesla Cybertruck at a dealership in New York.
Spencer Platt/Getty Images
Tesla drags on the Magnificent 7 tech stocks
Tesla stock has a history of volatility. Between September 2023 and April 2024, the shares fell 45% on worries about slow sales and skepticism about the company’s ability to deliver products such as its robotaxi.
The shares then more than tripled (up 237%) to the December high.
As of Tuesday, technical indicators suggest the stock is nearing a bottom. Tesla’s relative strength index was just under 29, its lowest level in a year and indicating that it’s a bit oversold. The RSI provides a snapshot of whether a stock or an index is rising too fast. A reading above 70 suggests the stock is rising too fast. Above 75, the stock is becoming vulnerable. Above 80 signals vulnerability.
The RSI reading does not mean, however, that Tesla has reached a bottom. A big disappointment in Nvidia’s earnings on Wednesday could push Tesla lower.
Tesla’s decline is a big reason that the stock indexes have struggled in 2025. Large-capitalization tech stocks have been getting hit the most: The Bloomberg Magnificent 7 Price Return Index is now down more than 10% since it peaked on Dec. 17.
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Tesla was, by far, the largest decliner among the seven stocks on Tuesday.
Amazon (AMZN) in fact was the only winner in the group, up slightly to $212.80.
The other members of the Magnificent 7 are Apple, Google-parent Alphabet, Facebook parent Meta Platforms (META) , Microsoft (MSFT) and Nvidia (NVDA) , which reports fiscal-fourth-quarter results after Wednesday’s close.
The Standard & Poor’s 500 Index fell 0.5% to 5,995. The Nasdaq Composite Index dropped 1.4% to 19,026.
Of 48 analysts who cover Tesla, 21 rate the stock strong buy or buy. Fifteen rate it a hold. Nine see it as an underperformer, with three analysts advising investors to sell, according to Yahoo. The breakdown is little changed over the past four months.
The average price target is $345.56, according to Yahoo Finance. The top target is $550, announced Jan. 22, from Wedbush Securities analyst Dan Ives, who has long been a big Tesla supporter.
The lowest target is $120 from Guggenheim, which has had a sell rating on the shares since January 2023.
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