Tesla Stock (TSLA) Tumbles for Eight Weeks Straight as Investors Panic
Tesla’s stock (TSLA) has fallen for eight straight weeks, dropping below its 200-day moving average. This signals that Wall Street views the stock as “dead money.” The sell-off has been fueled by weak car sales and growing concerns that CEO Elon Musk is too distracted with politics.
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Musk’s Political Ties Weigh on Tesla
Musk, now serving as President Donald Trump’s key adviser, is leading the Department of Government Efficiency. His deep involvement in politics has alienated Tesla’s traditionally liberal customer base. Protests and boycotts have damaged the company’s image. Some Tesla vehicles have even been vandalized.
TSLA Stock Faces Heavy Bearish Pressure
Investor sentiment is extremely negative. The options market is pricing in wild swings, with Tesla’s implied volatility far higher than the S&P 500. Traders are betting on dramatic 5% daily moves in either direction. The stock is now priced “like a car wreck.”
A Possible Rebound for Tesla Stock?
Tesla has a chance to shift the narrative. In June, it is expected to reveal self-driving robo-taxis, a move that could restore confidence. Upcoming earnings reports and potential new vehicle releases may also be key catalysts. If Tesla proves its technology and sales momentum, the stock could recover. But for now, Wall Street remains skeptical.
Is Tesla a Buy, Hold, or Sell?
Turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on 12 Buys, 13 Holds, and 11 Sells assigned in the past three months. Furthermore, the average TSLA price target of $331.07 per share implies 46.6% upside potential.