Tesla, Inc. (NASDAQ: TSLA) is experiencing a turbulent day in the markets, with its stock price dropping significantly as of 10:15 AM EDT on March 18, 2025. The last trade recorded the stock at $222.75, reflecting a decline of $15.26, or 6.85%, from its previous close of $238.01. This sharp downturn adds to an already challenging start to the year for the electric vehicle (EV) giant, raising questions about what’s driving the sell-off and what it means for investors.
Today’s Trading Snapshot
Tesla’s stock opened at $228.15, slightly below its previous close, and reached a high of $230.10 early in the session. However, selling pressure quickly took hold, pushing the price to a daily low of $222.30. With a trading volume of over 32 million shares by mid-morning—well below its three-month average of 89 million—the stock’s movement suggests a mix of profit-taking and broader market concerns. Compared to its 52-week range, which spans a low of $138.80 and a high of $488.54, today’s price sits closer to the lower end, underscoring the dramatic fall from its December 2024 peak.
Why Is Tesla Stock Falling Today?
Several factors appear to be contributing to Tesla’s latest stumble:
- Ongoing Sales Weakness Concerns
Investors remain jittery about Tesla’s sales performance, particularly in key markets like China and Europe. Recent reports have highlighted significant declines, with Bank of America noting a roughly 50% drop in European sales for January 2025 compared to the prior year. In China, Tesla’s introduction of a free self-driving trial has failed to stem worries about softening demand amid fierce competition from local EV makers like BYD. Analysts from UBS and Mizuho recently cut their price targets, citing weaker-than-expected Q1 2025 delivery forecasts, further fueling bearish sentiment. - Broader Market Dynamics
While the Dow Jones Industrial Average gained over 350 points on March 17, Tesla and other “Magnificent Seven” tech stocks lagged, with TSLA dropping more than 5% that day. Today’s decline aligns with a broader reassessment of growth stocks as economic forecasters dial back 2025 GDP projections. High interest rates, which dampened EV demand in 2024, continue to weigh on Tesla’s outlook, as affordability remains a hurdle for potential buyers. - Elon Musk and Political Backlash
Elon Musk’s high-profile political involvement, including his support for President Donald Trump and his role in the Department of Government Efficiency (DOGE), has sparked backlash. Protests outside Tesla showrooms—over 80 on March 15 alone, with more planned through April—reflect growing consumer discontent. Some attribute part of the stock’s 36% year-to-date decline in 2025 to boycotts tied to Musk’s polarizing actions, though the stock retains a 54% gain over the past 12 months. - Analyst Sentiment and Valuation Pressure
Tesla’s valuation, with a market cap of approximately $710 billion based on 3.17 billion shares outstanding, remains a lightning rod. After losing 50% of its value since December’s $480 peak, erasing over $800 billion in market cap, analysts are divided. Wedbush maintains a bullish $550 target, citing Tesla’s AI and robotics potential, while GLJ Research’s bearish $24.86 target reflects skepticism about near-term growth. Today’s drop follows a pattern of volatility, with one Tesla bull recently slashing their price target by $85, signaling caution.
A Glimmer of Hope?
Despite the gloom, some market observers see opportunity. Tesla’s energy segment and upcoming initiatives—like the planned 2025 launch of a robo-taxi service and mass production of its Optimus humanoid robots—offer long-term growth prospects. Posts on X suggest a resumption of sales momentum in March based on credit card data from China, Europe, and the U.S., hinting that today’s dip could be a buying opportunity for the bold. However, these claims lack definitive backing, and Tesla’s next earnings report on April 29, 2025, will be critical in clarifying its trajectory.
What’s Next for Tesla Stock?
Today’s 6.85% drop is another chapter in Tesla’s volatile 2025 narrative. With shares now down 38% year-to-date, according to BMO Capital Markets’ Brian Belski, the stock is testing investor patience. The immediate focus is on whether Tesla can stabilize deliveries and counter competitive pressures. Meanwhile, Musk’s outsized influence—both as a visionary and a lightning rod—continues to shape perceptions.
For now, Tesla remains a high-stakes bet. Its 52-week high of $488.54 feels distant, but at $222.75, it’s well above its $138.80 low. Investors are left weighing the risks of a prolonged slump against the promise of Tesla’s ambitious pivot to AI and autonomy. As the trading day unfolds, all eyes will be on whether this slide deepens or if buyers step in to halt the bleeding.
