Tesla (NASDAQ: TSLA) is exhibiting minor strength but remains in a bearish trend, with an artificial intelligence (AI) tool projecting that investors should brace for further losses before the electric vehicle (EV) manufacturer finds a bottom.
As of press time, Tesla stock was trading at $227, up over 2% on the day. However, in 2025, TSLA has dropped more than 43% year-to-date. The latest gains come after Tesla suffered its worst trading day since 2020, on March 10, when it plunged 15%.
One key driver of Tesla’s recent recovery attempt appears to be comments from former President Donald Trump. In a Truth Social post on March 10, Trump praised CEO Elon Musk as a “truly great American” and expressed support for the EV maker. Trump urged his supporters to back Musk and hinted at purchasing a Tesla himself.
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When will Tesla stock bottom
With Tesla sustaining significant losses, investor focus has shifted to when the stock might bottom and present a buying opportunity. To gain insight, Finbold turned to DeepSeek’s R1 AI tool for its projections.
According to the AI model, Tesla may bottom out between June and September 2025, assuming no additional negative catalysts emerge.
The platform noted that stocks typically reach their lowest levels when negative sentiment peaks and valuations become historically attractive.
DeepSeek AI suggested that if Tesla’s core fundamentals—profitability, innovation, and market leadership—remain intact, a recovery could begin within three to six months following the steep decline.
Several key factors will influence Tesla’s trajectory. The company’s upcoming earnings reports, expected in April and July 2025, will offer crucial insights into its financial health and growth outlook.
Macroeconomic conditions, particularly Federal Reserve interest rate decisions, could also significantly shape investor sentiment. Additionally, competition in the electric vehicle sector and potential regulatory changes may further impact Tesla’s performance.
The AI model also identified technical indicators, such as trading volume stabilization and breakouts above key resistance levels, as potential turnaround signals. At present, TSLA’s main resistance level is $250.
Tesla’s escalating struggles
Tesla’s ongoing struggles are partly due to broader market uncertainty, exacerbated by Trump’s heightened tariffs, which could disrupt its supply chain in key markets such as Canada and Mexico.
Additionally, Tesla’s brand reputation has taken a hit due to Musk’s political involvement, particularly in Europe. For instance, in Germany, Tesla registrations plummeted 70% in early 2025, likely influenced by Musk’s role in the country’s elections.
Despite these challenges, Wall Street remains divided on Tesla’s near-term trajectory. However, most analysts anticipate that the stock will recover over the long term, banking on the firm’s dominance in the EV space.
Featured image via Shutterstock
