Tesla Inc. TSLA has declined 22.75% this year, wiping about $353.97 billion in investor wealth in the first two months of 2025, while Elon Musk remains confident on the company’s growth, this investor believes that “only going to get worse.”
What Happened: Tesla’s market capitalization stood at $1,296.35 billion as of Dec. 31, 2024, which has plunged to $942.38 billion on Feb. 28. According to Ross Gerber, the president and CEO at Gerber Kawasaki Wealth & Investment, this decline could become steeper in the future.
He highlights that Tesla has become the target for “all the anti-Elon anger out there,” adding that the “anger is growing and very real.”
However, Tesla’s CEO and co-founder, Elon Musk, believes that with flawless execution, Tesla’s stock could gain over 1,000% in the next five years.
Why It Matters: According to a Reuters report, nine people were arrested during a protest outside a New York City Tesla dealership on Saturday. This was a part of nationwide “Tesla Takedown” demonstrations against Musk's role in federal workforce cuts under President Trump.
This comes as Trump appointed Musk to helm the Department of Government Efficiency or DOGE, which aims to cut “wasteful” federal spending.
Protesters blocked traffic and waved signs in multiple cities, targeting Musk. His cost-cutting measures have led to over 100,000 federal job losses, impacting key agencies. Organizers urged a Tesla boycott, calling it a strike against the administration's power.
Technical Analysis: Daily moving averages suggest a bearish trend for Tesla’s stock in the short-term.
The shares closed at $292.98 apiece on Friday. This was below its eight-day, 20-day and 50-day moving averages. However, according to Benzinga Pro data, the stock is trading above its 200-day moving average of $278.76, reinforcing long-term support at this level.
On the other hand, the momentum indicators were weaker. The moving average convergence divergence (MACD) reading of negative 25.31 signals negative short-term momentum, while a relative strength index (RSI) of 30.60 indicates that the stock is nearing oversold conditions and could be poised for a bounce back.
Price Action: Tesla rose 3.91% on Friday, outpacing the 1.56% rise in the Invesco QQQ Trust, Series 1 QQQ, which tracks the Nasdaq 100 index.
The stock remains 22.75% lower on a year-to-date basis, however, it’s up 55.72% over a year.
Benzinga tracks 31 analysts with an average price target of $336.19 for the stock, reflecting a “hold” rating. Estimates range widely from $24.86 to $550. Recent ratings from Benchmark, GLJ Research, and Stifel average $324.62, suggesting a potential 10.26% upside.
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