Tesla Stock Rebounds After Steep Decline
Tesla's (TSLA) battered stock has found support in the charts, offering a temporary respite after a brutal stretch this month. The stock had plunged by over 30% year-to-date at one point, but has since rebounded above its 100-day moving average, a key measure of market sentiment over the longer term.
This recovery follows a nearly 6% surge on Thursday, with shares climbing by an additional 1.5% in pre-market trading on Friday. "Sentiment was way too negative — the best is still ahead for Elon Musk," said Dan Ives, a Wedbush analyst. Tesla remains one of Ives' top picks for 2025.
Despite the recent bounce, shares are still down 12% year-to-date, making it the worst performer among the "Magnificent Seven" (AAPL, AMZN, NVDA, GOOG, MSFT, META, TSLA). This decline is partly attributable to a drop in deliveries in China and Australia, as well as increased EV competition in the US.
Analysts remain cautious about Tesla's prospects. Oppenheimer analyst Colin Rusch has expressed concerns about the impact of rising costs due to new tariffs, while a 2023 study found that 40% of Tesla's battery material suppliers are based in China.
However, Tesla continues to attract positive coverage. Benchmark initiated coverage with a Buy rating and a $475 price target, highlighting the potential of its robotaxi and Optimus robotics as growth drivers. Wedbush's Ives believes that autonomous driving is Tesla's future, with a potential market value of $1 trillion.