Tesla’s (NASDAQ: TSLA) stock continues to face a turbulent run when the company struggles to sustain sales in key markets, a situation partly attributed to the backlash against CEO Elon Musk.
Notably, the stock has dropped for seven consecutive weeks following Musk’s entry into the Donald Trump administration, wiping out about $800 billion in market capitalization.
Indeed, TSLA initially rallied in the wake of Trump’s election back in November, with investors considering his win bullish, given his close ties with Musk.
Picks for you
Now, Tesla has seen its post-election rally vanish, with shares trading at $262, down 0.3% on the day. The stock has plummeted from its December highs near $500, erasing all gains since the market rally following the 2024 U.S. election.
Notably, year-to-date, the equity has plunged 30%, bringing the stock dangerously close to a key support level around $250, a price last seen in late October before the election-driven surge. If this support fails, further downside could be in play.
Tesla stock’s turbulent 2025
At the same time, an analysis by charting platform TrendSpider on March 8 indicated that Tesla is now ranking as the second-worst-performing stock in the S&P 500 for 2025.
The analysis observed that TSLA has had a brutal run this year, recording a relentless downtrend that has broken multiple key support levels.
Recently, it lost its 200-day simple moving average (SMA) at $281.20, a crucial technical level that had previously acted as support. Meanwhile, the volume profile suggests some demand in the $250 to 260 range, but Tesla could see even more pain ahead if that level fails.
As for what to expect next, an analysis by The_RockTrading indicated that the upcoming week remains key for the American electric vehicle (EV) giant.
The analyst noted that if Tesla holds its current support, it could rebound, with bulls aiming for a recovery toward the $300 level and beyond. However, a decisive breakdown below this trendline could spell trouble, potentially accelerating the sell-off toward the $225 to $250 range.
Meanwhile, stock analyst Chris Perruna observed that Tesla’s long-term outlook remains bullish. In an X post on March 8, he noted that the current TSLA share price could present an attractive accumulation opportunity for patient investors.
Historically, Tesla has seen strong rebounds after periods of consolidation. With previous support levels around the $250 to $270 range, the current dip may offer an entry point for those eyeing a longer-term position.
Why Tesla stock is struggling
Tesla’s troubles emerged when Musk became heavily involved in politics, a move that triggered backlash from consumers, investors, and global markets.
His aggressive government restructuring under Trump, high-profile presence at conservative events, and support for far-right European parties have impacted Tesla’s core customer base.
The impact is even more severe in international markets, where sales have taken a significant hit. For instance, in Germany, deliveries plummeted by 76%. Norway, Sweden, and Australia have also seen steep declines, while Chinese sales have fallen 29% amid rising geopolitical tensions.
Adding to Tesla’s woes is growing competition from Chinese automakers and fears that Musk’s close ties to the Trump administration could make Tesla a target in an escalating U.S.-China trade war.
Wall Street’s take on Tesla stock
Tesla’s current troubles have also caught the attention of Wall Street analysts, who have slashed their TSLA stock price targets. For instance, Bank of America cut its target from $490 to $380, citing weak demand for new models and a lack of updates on Tesla’s affordable car.
Goldman Sachs lowered its target to $320 from $345, citing declining EV sales in key markets like Europe and China. Goldman also flagged Tesla’s competitive struggles in China, where rivals offer smart driving features without extra fees—unlike Tesla’s premium-priced Full Self-Driving (FSD) system.
Featured image via Shutterstock
