Tesla Stock Dropped 14.5% Last Week; Now Down 28% YTD - Here's Why
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Tesla’s (TSLA) stock has taken a major hit in 2025, dropping 28% year-to-date including a 14.5% decline this past week largely due to the feud between Elon Musk and President Donald Trump, along with weak EV sales and regulatory concerns.
Specifically, here’s what’s driving the downturn:
- Musk vs. Trump Feud: The fallout between Musk and Trump escalated on social media with Musk's public criticism of Trump's tax bill and Trump's threat to revoke Tesla's government contracts resulting the sharp sell-off.
- EV Sales Slump: Tesla’s sales in Germany fell 36% year-over-year, while Chinese shipments dropped 15%. The company is struggling against rising competition and slowing demand.
- Regulatory Uncertainty: Tesla’s push for autonomous robotaxis faces hurdles, with U.S. regulators investigating its Full Self-Driving software after a fatal crash.
- Market Sentiment Shift: Musk’s political involvement has alienated some investors resulting in boycotts in opposition to Musk's role as the leader of the administration's Department of Government Efficiency (DOGE), which sent Tesla shares to their lowest levels of the year in March and April.
About Tesla
Tesla, Inc. designs, develops, manufactures, leases, and sells electric vehicles (via its Automotive Segment), and energy generation and storage (via its Energy Generation and Storage Systems Segment) in the United States, China, and internationally.
Analyst Ratings
The average analyst rating for Tesla stock is "Hold" which means that analysts believe this stock is likely to perform similarly to the overall market.
Stock Price Forecast
According to 31 professional analysts, the 12-month price target for Tesla stock is $290.07 which represents a -2.0% decrease in the stock price over the next year. Source
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This article has been composed with the exclusive application of the human intelligence (HI) of the author. No artificial intelligence (AI) technology has been deployed.
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