Down More Than 30%, Tesla (TSLA) Stock is Officially in a Bear Market

Down 32% from recent highs, the stock of electric vehicle maker Tesla (TSLA) is officially in a bear market.

Maximize Your Portfolio with Data Driven Insights:

• Leverage the power of TipRanks’ Smart Score, a data-driven tool to help you uncover top performing stocks and make informed investment decisions.
• Monitor your stock picks and compare them to top Wall Street Analysts’ recommendations with Your Smart Portfolio

TSLA stock peaked at a 52-week high of $488.54 per share in mid-December. Since then, the stock has declined 32% to currently trade at $333.37. That puts Tesla in bear market territory, defined as a 20% decline or more from recent highs.

The majority of TSLA stock’s decline has come since U.S. President Donald Trump’s inauguration on Jan. 20 of this year. Since the inauguration, which Tesla CEO Elon Musk attended, Tesla’s share price has declined 22%. The selloff has accelerated in recent days, with the stock down 10% in the last five trading sessions.

Multiple Factors

Analysts are attributing the steady erosion of Tesla’s share price to multiple factors. These include Elon Musk’s role within the new Trump administration leading the Department of Government Efficiency, better known by the acronym “DOGE.” Investors appear worried that Musk’s attention is no longer focused on Tesla and the company’s future direction.

At the same time, Tesla has reported disappointing sales of its electric vehicles as well as poor financial results. The company most recently disclosed that its sales in China declined 11.5% in January from a year ago. The most recent earnings print showed that Tesla missed Wall Street’s targets across the board, with its operating income falling 23% year over year.

There are also concerns about Tesla’s new ventures that include super computers and humanoid robots, none of which has yet to come to market. Yet even with the current decline, many analysts continue to see TSLA stock as overvalued. JPMorgan Chase (JPM) analyst Ryan Brinkman recently wrote that “Tesla shares continue to strike us as having become completely divorced from the fundamentals.”

Is TSLA Stock a Buy?

Tesla stock currently has a consensus Hold rating among 34 Wall Street analysts. That rating is based on 12 Buy, 12 Hold, and 10 Sell recommendations issued in the last three months. The average TSLA price target of $335.86 implies 0.70% downside risk from current levels.

Read more analyst ratings on TSLA stock