Tesla stock (NASDAQ: TSLA) has been on a volatile ride in recent months, experiencing significant declines driven by multiple factors, from declining vehicle sales to CEO Elon Musk’s controversies. Investors are left wondering, "Why is Tesla stock down today?" as market fluctuations continue.

This article analyze Tesla stock’s performance, financial metrics, and competitive landscape. We will also explore Tesla stock predictions for 2025 and 2030 to understand its future trajectory.

Tesla Stock Price Today: Analyzing Recent Performance

As of today (Thursday), February 27, 2025, Tesla stock is trading at $290.80, reflecting a decrease of $11.96 (3.95%) from the previous close. This price drop is part of a broader downward trend influenced by macroeconomic conditions, slowing demand, and increasing competition in the EV market.

The declines continue for the fifth consecutive session, with the price dropping below the psychological level of $300 and the long-term 200 EMA moving average, which has indicated a downtrend since August 2024. Bears are currently gaining the upper hand.

Tesla Stock Price Movement Overview

Tesla stock chart analysis suggests that the stock has been declining steadily over the past few weeks, breaking key resistance levels and signaling a bearish trend. Investors closely monitoring Tesla stock today are concerned about its short-term outlook, leading to increased market volatility.

The sharp declines have caused the market capitalization of the tech giant to shrink from $1.4 trillion to less than $1 trillion, dropping below this psychological threshold for the first time since November of last year.

Tesla Technical Analysis

After breaking the key support level mentioned above, Tesla's stock price opens the way for a decline toward the July highs at $271. This level served as significant resistance at the end of last year before being breached in November when Wall Street surged following Donald Trump's election victory. The next support levels can be found at $213 (October lows) and $182 (August 2024 lows).

What about resistance levels? Besides the previously mentioned $300 and the 200 EMA, the next key resistance is at $326, corresponding to the local lows from November and February. Beyond that, the $359 level, tested in both November and February, serves as another critical resistance point.

The latest data collected by Pepperstone also shows that Tesla's stock price has been highly volatile recently. Over the past year, it has been easier to profit from after-hours trading than during regular market hours, with 97% of gains occurring outside standard trading sessions.

Key Reasons Why Tesla Stock Price Is Dropping

1. Declining Tesla Sales in Key Markets

One of the biggest factors influencing Tesla stock price is the sharp decline in vehicle sales across multiple regions:

• Europe: Tesla's sales plummeted by 45% YoY in January 2025, with only 9,945 vehicle registrations compared to 18,161 in January 2024.
• United States: Tesla’s market share in the BEV (Battery Electric Vehicle) segment dropped from 59% to 45%, with a 13% YoY decline in sales.
• China: Sales fell 15% YoY, reflecting weaker demand despite Tesla’s price cuts to attract buyers.

Lower sales have directly impacted Tesla’s revenue and profitability, leading analysts to downgrade their Tesla stock forecasts.

2. Macroeconomic Factors and Federal Reserve Policies

Tesla stock price has also been affected by macroeconomic headwinds, including:

• Rising interest rates: Higher borrowing costs discourage consumers from financing Tesla vehicles.
• Inflationary pressures: Rising production costs have squeezed Tesla’s profit margins.
• Stock market sell-offs: Broader economic concerns have led to outflows from high-growth stocks, including Tesla.

3. Financial Performance and Earnings Concerns

Tesla's recent financial reports have failed to meet Wall Street expectations, contributing to the stock’s downward trajectory. The company’s Q4 2024 earnings report showed:

• Revenue miss: Tesla reported $22.1 billion in revenue, falling short of the estimated $23.5 billion.
• Lower margins: The company’s gross margin declined to 17.2%, down from 22.3% in Q4 2023.
• EPS decline: Earnings per share (EPS) came in at $0.91, missing the $1.02 consensus estimate.

These weak financials have led investors to question whether Tesla stock prediction 2025 remains bullish or if a prolonged downturn is likely. In Q4 2024, Tesla reported financial results that fell short of analysts' predictions, with automotive revenue decreasing by 8% compared to the previous year and operating income plunging by 23%.

4. Competitive Pressure in the EV Market

Tesla is no longer the undisputed leader in the EV market. Increased competition from both traditional automakers and emerging EV startups has negatively impacted Tesla’s growth prospects:

• BYD: The Chinese automaker has overtaken Tesla as the world’s largest EV manufacturer by sales volume.
• Rivian & Lucid Motors: Premium EV startups are gaining traction, particularly in the U.S. market.
• Legacy Automakers: Ford, GM, and Volkswagen are aggressively expanding their EV portfolios.

As competitors introduce new models with competitive pricing and advanced features, Tesla’s pricing power has weakened, contributing to its stock price decline.

5. Elon Musk’s Controversies and Leadership Distractions

• Investor sentiment toward Tesla stock is also being impacted by Elon Musk’s actions outside the company. Concerns include:
• Longtime Tesla shareholder Ross Gerber claims Musk "doesn't work at Tesla anymore" with his attention divided across SpaceX, xAI, X (formerly Twitter), and government efficiency efforts.
• Musk has been spending considerable time in Washington, D.C., managing Trump's Department of Government Efficiency (DOGE).
• His extreme political views and activism have spurred protests across various markets, including demonstrations at Tesla's retail locations and service centers.
• Musk's close association with President Donald Trump has created polarizing perceptions of the Tesla brand, with some consumers boycotting the company.

Tesla Stock Prediction 2025 and Long-Term Outlook

Analysts have varying perspectives on Tesla's stock forecast for the remainder of 2025:

Despite the current downturn, some analysts believe Tesla stock forecast for 2025 remains promising, citing potential catalysts such as:

• New vehicle models: Tesla is expected to launch next-generation vehicles, including an affordable EV model by 2026.
• Full Self-Driving (FSD) advancements: Improvements in Tesla’s autonomous driving technology could boost revenue.
• Energy business growth: Tesla’s expansion in solar energy and battery storage could provide diversification beyond EVs.

Tesla Stock Price Prediction 2030

Looking further ahead, Tesla stock price prediction for 2030 varies widely among analysts:

While some forecasts remain optimistic, much will depend on Tesla’s ability to maintain its competitive edge in an increasingly crowded EV market.

Conclusion: Should Investors Buy Tesla Stock Now?

Tesla stock’s recent decline has been driven by a combination of factors, including weaker sales, macroeconomic challenges, increased competition, and investor concerns over Elon Musk’s leadership. While short-term headwinds persist, Tesla’s long-term potential remains strong, particularly in autonomous driving and energy solutions.

For investors considering Tesla stock today, it’s essential to weigh both risks and opportunities. As Tesla stock price prediction 2025 and 2030 vary, potential buyers should focus on Tesla stock forecasts, market trends, and key financial indicators before making investment decisions.

Key Takeaways:

• Tesla stock price is down due to declining sales, competition, and financial performance concerns.
• Macroeconomic factors, including interest rate hikes, have pressured growth stocks like Tesla.
• Analysts have mixed Tesla stock predictions for 2025, with long-term potential remaining strong.

Investors can make well-informed decisions in this evolving market landscape by staying informed and tracking Tesla stock charts, market updates, and expert insights.

Tesla Stock News, FAQ

Why is Tesla stock down today?

Tesla stock is down today due to a combination of factors including slowing vehicle sales across key markets, concerns about CEO Elon Musk's divided attention, disappointing Q4 2024 financial results, and increasing competition in the EV market. The stock has broken below key technical support levels, triggering additional selling pressure as investors reassess Tesla's growth prospects and premium valuation in light of these challenges.

How much has Tesla stock price dropped in 2025?

Tesla stock has plummeted approximately 25% year-to-date in 2025, making it the weakest performer among the Magnificent 7 tech stocks. On February 25, 2025, Tesla shares dropped by more than 8% in a single day, pushing its market capitalization below $1 trillion for the first time since November 2024. This represents a 35% decline from its peak closing price reached in December 2024.

What is causing Tesla stock price to go down?

The primary factors causing Tesla stock price to go down include: first annual decline in EV sales after years of growth (down 45% in Europe and 15% in China), shrinking profit margins (automotive gross margins fell to mid-teens in Q4 2024), Elon Musk's divided attention across multiple companies and political activities, intensifying competition from traditional automakers and Chinese EV manufacturers like BYD, and concerns about the company's high valuation relative to financial performance.

What is the Tesla stock price prediction for 2025?

Analyst predictions for Tesla stock in 2025 vary widely. JPMorgan maintains a bearish price target of $135 (60% downside), while ARK Invest has an extremely bullish outlook with a $3,000 target based on potential autonomous driving success. Morningstar values Tesla at $250, viewing current prices as significantly overvalued. The analyst consensus ranges from $300-$528, with predictions heavily dependent on Tesla's ability to return to growth, successfully launch its robotaxi service, and maintain its technological edge.

Is Tesla stock a good buy at current prices?

Whether Tesla stock is a good buy depends on your investment horizon and risk tolerance. Cautious investors might wait for further price corrections given Tesla's still-elevated valuation (forward P/E ratio of 118x), declining sales, and technical indicators suggesting continued downward momentum. However, long-term investors who believe in Tesla's autonomous driving vision, energy business growth, and ability to launch more affordable vehicles might view the current price drop as a buying opportunity, especially if they believe Tesla can achieve its guided 25% auto growth in 2025.

When will Tesla stock price recover?

Tesla stock price recovery will likely depend on several key catalysts: successful launch of the robotaxi fleet planned for June 2025 in Austin, return to vehicle sales growth as promised by management, introduction of a more affordable vehicle model, improvement in automotive gross margins, and potentially a refocusing of Elon Musk's attention on Tesla operations. Technical analysts suggest that breaking above the $430 resistance level would be a significant indicator of recovery momentum, though the stock faces substantial resistance at its 52-week high of $489.