TSLA – Day Chart
The price of TSLA shares slumped to the $244.64 level that began a Trump election win rally. After slumping back to that level, the shares have risen 20% this week and will try to hold the current low.
Some negativity in sales data continued as Tesla saw a -40% slump in Europe. There is some seasonality to the figures, but some owners are boycotting the company, while others have turned to protests and vandalism.
Tesla sold fewer than 17,000 cars compared to over 28,000 in the same month in 2024, with a market share decline from 2.8% to 1.8%. Another factor in the sales drop is the impending release of a new Model Y, the company’s flagship car.
The figures were released alongside reports that Tesla’s Chinese competitor BYD had overtaken Musk’s company in annual revenue during 2024, despite the impact of foreign tariffs on Chinese-made EVs.
Musk has been taking criticism from investors who believe he should be spending more time with the electric vehicle maker.
One investor undeterred by the recent price decline is Ark Invest founder Cathie Wood, who sees an 800% gain over the next 5 years. Speaking to Bloomberg, Wood said she sees shares of Tesla climbing to $2,600 in five years.
“Our outlook has not changed,” Wood said. “What’s going on right now, very short term.”
The investment manager said she expects to see a new budget model coming soon but is more bullish on areas such as robotaxis and robotics.
Musk even mentioned Wood by name when describing his own bull case for Tesla at a surprise staff meeting last Thursday, when he urged Tesla employees to hold their shares.
“Some people, like Cathie Wood at Ark Invest, do see the future,” Musk said. “So what I am saying is, hang on to your stock,” Musk said.
The potential for self-driving and robots is still a while away but the stock can still recover further from the recent slump.
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