Tesla, Inc.’s stock has taken a dramatic nosedive, shedding nearly half its value since hitting a record high of $479.86 on December 17, 2024, according to Yahoo Finance.
As of Monday morning, March 10, 2025, Tesla shares opened at $252.36, a 3.92% drop from Friday’s close of $262.65, per Markets Insider.
This latest decline caps a seven-week slide that has wiped out approximately $700 billion in market capitalization since the post-election “Trump bump” fueled a surge last November, reported Bloomberg and the New York Post.
The electric vehicle (EV) giant’s stock woes come amid a perfect storm of faltering sales, shifting investor sentiment, and broader market turbulence tied to Trump administration policies.
Analysts and government statements from the past few days highlight a complex mix of factors driving the downturn.
Tesla’s global deliveries have hit a rough patch, with recent data painting a grim picture.
These declines follow Tesla’s first annual delivery drop in over a decade in 2024, as reported by CNN Business.
Adding fuel to the fire, CEO Elon Musk’s high-profile role as President Donald Trump’s Department of Government Efficiency (DOGE) co-head has sparked controversy.
Musk’s political alignment with Trump, including his push to slash federal programs, has alienated some Tesla buyers.
Forbes cites a Houston retiree canceling Cybertruck orders due to Musk’s Trump ties, while CNN Business reports a dip in Tesla loyalty in blue states like California.
As such, Wall Street’s optimism appears to have soured fast.
On March 6, Baird analysts cut their Tesla price target, citing “uncertainty” in delivery outlook tied to Musk’s government role, per Yahoo Finance. Bank of America followed suit earlier that week, slashing its target from $490 to $380 due to weak EU sales and delays in affordable models or robotaxis, TheStreet reports.
Goldman Sachs also lowered its target to $320 from $345 on March 7, according to CNBC, citing declining EV demand in key markets.
Despite the gloom, some analysts see a silver lining.
Wedbush’s Dan Ives, a staunch Tesla bull, added the stock to his “Best Ideas List” on March 6. He maintained a $550 target and called it a “gut check moment” for investors, per Yahoo Finance.
Barron’s notes that TD Cowen upgraded Tesla to Buy on March 7, raising its target to $388. The company is betting on a revival of the 2025-26 product cycle.
Yet, with Tesla’s price-to-earnings ratio still hovering near 90, skeptics like Miller Tabak’s Matt Maley warn of further downside, Bloomberg reports.
The broader market context isn’t helping.
The S&P 500 and Nasdaq suffered their worst week of 2025, ending March 7, with the Nasdaq entering correction territory (down over 10% from its December high), per Yahoo Finance and the New York Times.
Trump’s tariff policies—25% levies on Canada and Mexico, implemented and partially reversed – have whipsawed markets, raising fears of an economic slowdown.
Tesla, heavily reliant on global supply chains, has been hit harder than other “Magnificent Seven” tech stocks, Nasdaq notes.
In the Dallas/Fort Worth metroplex, home to a growing EV market, Tesla’s woes could ripple. Local dealers report a softening demand for used Teslas, with four models among the top 20 for value loss in the year ending January 2025, per Forbes.
Meanwhile, DFW’s aerospace sector, already bracing for Pentagon budget cuts announced March 8 (CBS News), may face added pressure if Tesla’s slump signals broader economic uncertainty.
Tesla’s stock closed at $263 on March 7, its lowest since November, per Yahoo Finance.
While some see an “oversold” buying opportunity, as the New York Post suggests, others warn of more profound challenges—aging models, quality issues, and rising competition from Chinese EV makers like BYD, per CNN Business. The U.S. Department of Justice has stayed silent on Tesla’s operational impacts, but the company’s next moves—new models, robotaxis, or a sales rebound—will be critical.
For now, Tesla’s roller-coaster ride continues, leaving investors and DFW drivers alike wondering if the EV pioneer can recharge its momentum.