Core Viewpoint - Tesla's stock has experienced significant volatility, with a record high of $480 per share in December 2020, followed by a decline of over 50% by early March 2021, raising concerns about demand and competition [1][2][4]. Historical Performance - Tesla stock has historically rebounded after declines of over 50%, averaging a return of 446% in the 12 months following such declines [3]. - Previous instances of significant stock declines occurred in 2017, 2020, and 2021, with returns of 394%, 804%, and 140% respectively in the year following their lows [5]. Current Market Challenges - Tesla is facing deteriorating demand globally, losing market share in the U.S. (nearly 7 percentage points), Europe (8 percentage points), and China (2 percentage points) in early 2025 [7]. - The company is struggling with increased competition and an aging lineup of electric vehicles, prompting plans to introduce a more affordable model, the Model Q [8]. Sales Performance - Tesla's sales in Europe declined by 49% in the first two months of 2025, despite overall growth in the electric vehicle market, indicating potential brand damage due to CEO Elon Musk's political distractions [9]. Future Prospects - The company plans to launch an autonomous ride-sharing service (robotaxi) in Austin, Texas, in June 2025, but faces execution risks due to competition from established players like Waymo [10][12]. - Tesla's full self-driving software relies solely on computer vision, making it potentially less expensive and more scalable than competitors that use multiple sensor types [11]. Conclusion - For Tesla to maintain its historical trend of recovery and growth, it must address demand issues, avoid brand damage, and successfully launch its robotaxi service [13].