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Why Tesla Stock Has Fallen Over 45% Since December 2024

By The Tokenist (Timothy Fries )Stock MarketsMar 11, 2025 04:01
ph.investing.com/analysis/why-tesla-stock-has-fallen-over-45-since-december-2024-208066
Why Tesla Stock Has Fallen Over 45% Since December 2024
By The Tokenist (Timothy Fries )   |  Mar 11, 2025 04:01
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Tesla (NASDAQ:TSLA) (NYSE: TSLA), the electric vehicle giant, has recently experienced a significant drop in its stock value, which has fallen nearly 45% since December. This steep decline follows CEO Elon Musk’s public support for Donald Trump’s election victory, a move that has sparked concerns among investors about potential distractions from the company’s main business endeavors.

Despite the downturn in stock performance, Tesla’s valuation remains notably high, driven largely by speculative future technologies, such as autonomous vehicles and humanoid robots, which have yet to be realized.

Tesla Faces Multiple Challenges as Stock Price Continues to Drop

Tesla’s core business of electric vehicles is currently facing a multitude of challenges. Sales have been declining, and the company is encountering stiff competition from other automakers, particularly the Chinese firm BYD (SZ:002594).

Additionally, Tesla’s strategic pivot from mass-market electric vehicles to focusing on self-driving technology has not yet produced the anticipated outcomes. This shift has been met with regulatory challenges, as the deployment of these advanced technologies requires navigating complex legal landscapes.

Analysts and investors are divided on Tesla’s future, with some expressing concerns about overvaluation, while others remain hopeful about Musk’s ambitious vision.

Tesla Stock Brief

Tesla stock closed Monday at $222.15, down 15.4% since Friday's close. Over the past 52 weeks, the stock has fluctuated between a low of $138.80 and a high of $488.54.

Key financial metrics include a market capitalization of $773.22 billion and a trailing P/E ratio of 117.26, indicating a high valuation relative to earnings. The company’s total revenue stands at $97.69 billion, with a recommendation key of “Hold” from analysts, reflecting cautious optimism about its future trajectory.

Reviewing recent historical prices, Tesla’s stock has shown volatility, with fluctuations observed throughout February and early March. For instance, on February 10, the stock opened at $356.21 and closed at $350.73, while by February 27, it opened at $291.16 and closed at $281.95. Analysts have set a high target price of $550.00 and a low target of $135.00, with a mean target price of $344.82, indicating varied expectations about the company’s future performance.

***

Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.

Why Tesla Stock Has Fallen Over 45% Since December 2024
 

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Why Tesla Stock Has Fallen Over 45% Since December 2024

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