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Tesla has seen better days. From declining sales to recalled trucks, the electric vehicle (EV) manufacturer is in a precarious position. Who knows that better than the shareholders? Investors are wary about buying, selling or holding their Tesla stock. Here’s what you need to know about TSLA in 2025 and beyond.
Why Is Tesla Stock Struggling in 2025?
Tesla shareholders are becoming increasingly concerned about the manufacturer’s direction. Since its record high in November 2024, the stock has been in freefall. Tesla is supposed to be the world’s leader in EV production, but sales performance is rapidly declining. For instance, Tesla has seen a 40% drop in new vehicle registrations in Europe since February 2024.
The worst part for Tesla is that EV registrations rose by 26% in the same period. Therefore, the Europeans are showing their displeasure through their wallets. Instead of Tesla, people are buying from luxury brands like Mercedes-Benz, BMW and other familiar names. It was once the leader of European EV sales but has since given away the title to competitors.
Don’t Tread on Europe
Plus, the drop isn’t just in one or two European countries – it’s across the board. Tesla sales in Germany plummeted by 76% and Italy by 55%. Everywhere you look, sales have declined for one big reason — Elon Musk. The company’s CEO is the reason for the highest of highs and the lowest of lows.
Europeans are old enough to have lived through fascist regimes and recall stories from their parents. Unfortunately, Musk hasn’t gotten the memo. His unabashed support of far-right candidates has soured public opinion for folks across the Atlantic. All it took was the controversial salute in January to kick-start the anti-Tesla movement.
Musk has intervened in elections across Europe and North America in the last few years. While Giorgia Meloni pulled off victory in Italy in 2022, times have rapidly changed. Musk’s support for the far-right AfD party inspired protests in Germany and led to February’s failure in the federal elections. All the bad news has led some investors to bail on their Tesla stock.
The Tesla Stock Chart Shows Volatility
Stability gives investors more peace of mind and less risk. However, Musk’s company has been as volatile as any publicly traded company on the NASDAQ or S&P 500. Here are some of the most significant Tesla stock chart declines from the past few years, according to data from 2020 to the present:
| Dates | Stock change |
| Jan. 8, 2021 – May 21, 2021 | -34% |
| Nov. 5, 2021 – Feb. 25, 2022 | -33.7% |
| Sept. 16, 2022 – Jan. 6, 2023 | -62.7% |
| Dec. 15, 2023 – April 19, 2024 | -42% |
| Dec. 13, 2024 – March 21, 2025 | -43% |
The Late 2024 Rise
Tesla stock has fallen in the late winter and early spring. However, the price is much higher than at other points, such as January 2023. In mid-December, the ticker hit its highest point in company history, reaching over $400 per share. Investors were enthusiastic about Tesla’s trajectory, considering the recent Republican win.
Experts attribute the record stock price to anticipating what Musk could do within the federal government. At that point, President-elect Donald Trump had said Tesla’s CEO would be a member of the White House as a senior advisor and the head of the Department of Government Efficiency (DOGE). Investors hoped he could sway the approval process of autonomous vehicles (EVs).
Is Tesla’s Stock Overvalued?
Typically, buying a share of Tesla costs between $250 and $400, depending on how well the company is doing. The price significantly outpaces other auto manufacturers, with only Ferrari outpacing Musk’s company. Ferrari has the backing of celebrities worldwide, so it’s no surprise to see them at the top. However, everybody else is far behind.
If you separate automakers by market cap, Tesla is the highest by far. Musk’s company has a $856 billion market cap, followed by Toyota’s $233 billion. American competitors like General Motors, Ford and Stellantis are further down the list under $50 billion. So, what gives? Is Tesla stock still overvalued in 2025?
Morningstar, a stock evaluator, gave Tesla a 2-star rating in February and said the company is significantly overvalued. In the evaluation, it said Tesla investors are hoping it becomes an artificial intelligence (AI) provider in addition to an automaker. However, selling cars is the primary business, which has not fared well in the past few months.
Tesla endures as many hits as it does victories, and that’s what the investors must deal with. Some setbacks are more significant than others, though they’re still worth mentioning. For instance, regulators recently recalled all Cybertrucks due to a faulty exterior panel on the windshield. The last thing investors want to see is their company being made fun of on social media.
In the long run, there could be even more troubles abroad. Besides Europe, Tesla is facing setbacks in China on several fronts. First, the Chinese government is forcing Tesla to change the name of its full self-driving (FSD) feature because its cars aren’t actually autonomous.
Simultaneously, Tesla is losing ground as the EV leader in Europe and the rest of the world. In fact, Chinese automaker BYD just eclipsed Tesla in worldwide sales, as it reached $100 billion in 2024. The record pace shocked even the CEO of BYD, who thought it would take until 2025 to surpass Musk. If Tesla loses its influence worldwide, it could mean doom for its stock price for the rest of the year.
Tesla Stock Predictions for the Rest of 2025
Predicting Tesla stock is as reliable as picking racehorses or lottery numbers. However, you can make educated guesses about what will affect the ups and downs. Here are the most significant factors affecting TSLA’s ticker in 2025:
- Positive: Tesla Bot could cement the company’s presence in the AI world.
- Positive: Tesla has numerous government contracts and could supply the federal government’s fleet in the next couple of years.
- Positive: The company’s proposed robo taxis may become widespread in major U.S. cities.
- Negative: Volatility could be ahead, as a wealth manager and major investor has called on Musk to step down.
- Negative: Global sales could slip more in Europe, considering the recent fallout.
- Negative: EV manufacturers like BYD are expanding their influence in key markets like Europe and Oceania.
Making Sense of the Recent Tesla Stock Turmoil
At its core, TSLA is just like any other ticker in the stock exchange. As an investor, you must live with the ups and downs. However, the Tesla stock predictions for 2025 could be bleak unless the company significantly shifts its sales in Europe and other locations. Will more shareholders step up to call for leadership changes?
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Author
Jack Shaw is a senior writer at Modded. Jack is an avid enthusiast for keeping up with personal health and enjoying nature. He has over five years of experience writing in the men's lifestyle niche, and has written extensively on topics of fitness, exploring the outdoors and men's interests. His writings have been featured in SportsEd TV, Love Inc., and Offroad Xtreme among many more publications.
