Tesla’s Turbulent Ride: Why the Stock Is Plunging and What Savvy Investors Should Watch Next
Tesla shares just plunged over 8% in two sessions—analysts see bigger moves ahead. Here’s what’s really fueling the drop and the hidden upside.
- 8.5%: Tesla’s recent share price decline in just 24 hours
- 11%: Total drop since May 29’s $367.71 high
- 20%: Tesla’s Q1 sales plunge compared to last year
- $299.38: Analyst average price target for Tesla—nearly 10% below current levels
Tesla (NASDAQ: TSLA) is grabbing headlines—and not for the reasons investors want. After a blistering rally in May fueled by CEO Elon Musk’s renewed attention, Tesla’s shares have nosedived, wiping out weeks of gains. The turbulence has everyone asking the million-dollar question: Is this a rare buying window, or are we only seeing the start of something bigger?
Musk Makes Moves—but Investors Still Jittery
This time last month, Elon Musk gave Wall Street what it wanted: more focus on Tesla. By resigning from President Trump’s high-profile Government Efficiency group, Musk pledged he’d double down on steering Tesla’s ship. Traders cheered, pushing the stock up 23% in May. But the honeymoon didn’t last.
Investor doubts crept in as Tesla’s Q1 sales revealed a troubling 20% year-over-year decline, raising fears Musk’s attention may have come too late. Musk’s track record for transforming vision into profit remains a powerful magnet for bulls, but many on Wall Street now question whether he can juggle Tesla and his growing empire of side ventures.
On top of that, most analysts are sitting firmly on the fence. Their average price target for Tesla—$299.38—is nearly 10% below where the stock closed last night. Worse, fair value models from InvestingPro peg Tesla’s true worth at just $275.73, suggesting even more downside could be coming.
What’s Fueling the Drop (and the Hopes)?
Tesla’s wild ride isn’t just about earnings. Investors are hunting for clues that Tesla’s upcoming projects will move the needle. Two stand out: the much-hyped cheaper models and the game-changing Robotaxi network.
The pitch? Any Tesla already on the road could start earning for its owner via an autonomous fleet, opening a lucrative new revenue stream. If Robotaxi launches smoothly, Tesla might regain its crown as the market’s growth king.
But here’s the catch: Wall Street isn’t sure these future innovations aren’t already baked into the stock price. Until Tesla delivers—and more importantly, surprises—shares could stay under pressure.
Q&A: Should You Buy Tesla After This Drop?
Q: Is Tesla’s current pullback a buying opportunity?
Many experts warn patience might pay off. With most growth already priced in and new products still months out, the odds for deeper value later this year appear strong.
Q: What risks should investors watch?
Keep an eye on Musk’s focus, upcoming vehicle launches, and whether Tesla hits new Robotaxi milestones. Missed targets could spark further volatility.
Q: What do the pros suggest instead of Tesla?
Some investors are shifting to lesser-known, high-growth tech names. InvestingPro’s “Titans of Tech” strategy has outperformed the market, revealing hidden gems long before they hit the mainstream.
How-To: Diversify Beyond Tesla in 2025
How can investors find the next big winners?
– Leverage AI-driven stock strategies. Platforms like Investing.com use real-time data to spot bullish trends before the crowd.
– Consider sector rotation. As the auto and tech landscape shifts, staying nimble can provide an edge.
– Read multiple analyst reports. Check out trusted financial news on Bloomberg or CNBC for broader insight.
Final Checklist to Play Tesla’s Wild 2025
- Monitor Musk’s major business moves
- Track sales data and delivery forecasts
- Follow news on Robotaxi and cheaper EV models
- Compare expert price targets with current trading levels
- Explore alternative tech stocks for balance
Bottom line: Stay alert. Watch for new catalysts. And remember—sometimes, waiting for a better entry pays off big.