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Tesla wipes out all post-election gains; When will TSLA's suffering end?
TeslaTesla(US:TSLA) Finboldยท2025-03-08 19:26

Core Viewpoint - Tesla's stock has experienced significant declines due to struggles in maintaining sales in key markets, exacerbated by CEO Elon Musk's political involvement, resulting in a loss of approximately $800 billion in market capitalization [1][2][8]. Group 1: Stock Performance - Tesla's stock has dropped for seven consecutive weeks, trading at $262, down 0.3% on the day, and has fallen from December highs near $500 [2][3]. - Year-to-date, Tesla's equity has plunged 30%, nearing a critical support level around $250, which was last seen in late October [3]. - Tesla is currently ranked as the second-worst-performing stock in the S&P 500 for 2025, indicating a brutal downtrend [4]. Group 2: Technical Analysis - The stock has broken multiple key support levels, including the 200-day simple moving average (SMA) at $281.20, which previously acted as support [5]. - Analysts suggest that if Tesla holds its current support, a rebound towards the $300 level could occur, but a breakdown below this trendline may lead to further declines towards the $225 to $250 range [6]. Group 3: Market Challenges - Tesla's sales have significantly declined in international markets, with deliveries in Germany plummeting by 76% and a 29% drop in Chinese sales amid geopolitical tensions [9]. - The company faces increasing competition from Chinese automakers, which offer advanced features without additional fees, contrasting with Tesla's premium-priced Full Self-Driving (FSD) system [12]. Group 4: Analyst Sentiment - Wall Street analysts have reduced their price targets for Tesla, with Bank of America lowering its target from $490 to $380 due to weak demand for new models [10]. - Goldman Sachs has cut its target to $320 from $345, citing declining EV sales in key markets like Europe and China [12].