- Tesla Inc. (TSLA) stock has dropped nearly 50% from its 52-wkh, losing $155 billion in market value over a 17% slide across 13 sessions, yet retail investors, fueled by faith in CEO Elon Musk, invested $8 billion, the largest inflow since 2015, per Bloomberg citing JPMorgan (JPM) data.
- Global sales are declining in markets like France, Germany, China, and Australia, worsened by backlash tied to Musk’s role in the Trump administration, prompting protests and a “buyers’ strike,” with Morgan Stanley’s (MS) Adam Jonas cutting forecasts Thursday while eyeing robotics and AI potential.
- Despite Tesla’s struggles and Wall Street’s caution, Wedbush’s Daniel Ives lauded Musk’s Friday efforts to reassure staff, predicting 90% of future valuation from autonomous tech, a vision driving retail enthusiasm undeterred by valuation, as noted by DataTrek’s Nicholas Colas.
Tesla Inc. (TSLA) is at a pivotal juncture as its stock faces a steep decline, losing nearly 50% of its value after reaching a 52-week high of $488.54—a surge initially driven by optimism surrounding Donald Trump’s election victory. According to Bloomberg, the drop includes a significant 27% month-over-month plunge, and a 17% drop over 13 trading sessions, wiping out $155 billion from Tesla’s market value. Despite this sharp downturn, the report notes that a dedicated base of individual investors – ardent supporters of CEO Elon Musk – has stepped in, investing $8 billion into the stock. This marks the largest inflow since at least 2015, according to retail trading data shared by JPMorgan Chase (JPM) analyst Emma Wu. These retail traders, who swarm online forums and X (Musk’s social media platform) with detailed analyses and unwavering support, remain undeterred by the company’s global sales slump and Wall Street’s growing caution, viewing the dip as a chance to double down on a stock that once minted millionaires.
The enthusiasm of Musk’s fanbase stands in sharp contrast to Tesla’s broader challenges, as sales falter in critical markets like France, Germany, China, and Australia, with first-quarter delivery figures – due early next month – expected to reflect this downturn. Bloomberg highlights how Musk’s high-profile role in the Trump administration, leading the Department of Government Efficiency, once seen as a potential advantage, has morphed into a liability, sparking backlash and boycotts that have turned Tesla vehicles into political lightning rods. Protesters have escalated tensions, attacking showrooms with Molotov cocktails and vandalizing charging stations, amplifying negative sentiment that Morgan Stanley’s (MS) Adam Jonas cites as a “buyers’ strike,” alongside competition and an aging lineup, prompting him to cut his price target on Thursday while retaining a ‘Buy’-equivalent rating tied to Tesla’s robotics and AI potential.
Yet, amid this turmoil, Wedbush’s Daniel Ives praised Musk’s Friday efforts to steady the ship, reassuring employees in an all-hands meeting and reinforcing a vision where 90% of Tesla’s value hinges on autonomous-driving technology and robotics—a narrative that fuels the retail investor surge. Nicholas Colas of DataTrek Research notes these investors, many enriched by Tesla’s past gains, shrug off valuation concerns, betting instead on Musk’s transformative genius. With shares now among the S&P 500’s (^GSPC) worst performers this year, down nearly 50% from their peak, Tesla’s fate rests on whether Musk can pivot from political distractions to deliver on futuristic promises, even as Wall Street slashes forecasts and the faithful keep buying.
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