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26.02.2025 02:48 PM
Tesla loses ground: temporary setback or opportunity for traders?

Tesla is once again in the spotlight. The company's shares have dropped significantly over the past month — down 25%. Just recently, however, they were up 21% since the presidential election. The reasons for the decline are clear: investors are adjusting their expectations for vehicle deliveries, and Elon Musk's political activities are causing mixed reactions.

According to official estimates, Tesla delivered 2 million cars in 2024. However, industry analysts are less optimistic, suggesting that the actual figure is closer to 1.7 million. If this reduction is confirmed, Tesla could see a 4% decline instead of a 12% increase. This significant gap between expectations and reality is the key factor pressuring the company's stock.

Sales in Europe are of particular concern. In January, Tesla's sales were down 45% compared to the previous year, and its share of new car registrations fell from 1.8% to 1%. This is a clear sign of slowing demand. Some analysts attribute this to Elon Musk's public statements, which may be driving away potential customers.

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Against this background, Tesla's stock is one of the most volatile in the market. Such sharp moves create opportunities for traders:

  • Short-term trades. With the stock swinging sharply up and down, there are chances to capture price movements and profit from both dips and rallies.
  • Long-term prospects. A new, more affordable Tesla model is expected to launch in 2026, which could give the company a growth boost. The current dip could be an excellent entry point for investors who believe in Tesla's long-term success.

To trade such a volatile asset, reliable trading conditions are essential. We offer tight spreads, low commissions, and easy access to the US market. Fast trades, high-quality analytics, and powerful tools are all you need to make the most of this situation.

Outlook

Tesla is going through challenging times, but such moments present opportunities for those who can spot potential. It is crucial to stay on top of developments, monitor key metrics, and use strong price movements to your advantage. Stay vigilant, act confidently, and maximize your opportunities in the current environment.

Irina Maksimova,
Pakar analisis InstaForex
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