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Shares of the EV giant are now down more than 36% this year, with the relative strength index suggesting oversold levels, yet they still trade at a lofty 93x Tesla’s estimated 2025 earnings.
Tesla, Inc. shares have been in freefall since January-end, sliding for a record nine consecutive weeks and erasing nearly $530 billion in value this year.
Investor concerns are mounting over economic growth, President Donald Trump's trade policies, and, most notably, CEO Elon Musk's role in the administration as part of the Department of Government Efficiency (DOGE).
According to The Wall Street Journal, some investors are offloading Tesla shares to protest Musk's government spending cuts or his controversial social media activity. Others worry he is too distracted, leading to doubts about the stock's ability to stay on course.
On Stocktwits, sentiment for Tesla remains 'bearish,' with message volume down 18% over the past week. Many retail traders expressed frustration over Tesla's increasingly politicized brand.
A recent Stocktwits poll of over 3,300 respondents found that 47% expect "lower lows" this week, while 44% believe the stock is "headed higher from here." The remaining 9% are undecided.
One user argued that Trump's cross-border tariff war has led to "deep shame" in Canada for owning a Tesla and said Europe would follow suit.
"In the USA, no one is going to buy this car aside from MAGA [Republicans who back Trump]. But MAGA are not well known for their love of EVs… And how much is insurance gonna cost if every Tesla is now a moving target?" they added, referring to growing attacks on the brand due to Musk's politics.
Another said, "The only way this recovers is if Elon sells his entire stake, steps down 100%, and issues a genuine apology for his behavior. It's not going to happen."
Last week, Musk held a rare all-hands meeting, live-streamed on X, where he addressed rising global vandalism against Tesla vehicles and urged employees to "hang on to your stock."
Wedbush analyst Daniel Ives praised Musk for "reading the room" and reassuring employees and investors at a critical moment.
Meanwhile, The Globe and Mail reported that Nova Scotia has become the latest Canadian province to scrap EV rebates for Tesla due to Musk's ties to the U.S. administration and its trade war with Canada.
Shares of the EV giant are now down more than 36% this year, with the relative strength index suggesting oversold levels, yet they still trade at a lofty 93x Tesla’s estimated 2025 earnings.
According to Koyfin, among the 48 analysts covering Tesla, 23 rate it a 'buy' or 'strong buy,' 14 recommend 'hold,' and 11 call it a 'sell' or 'strong sell. '
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