Tesla Stock Daily Drive

May 20, 2025 • Finance

Hosted by Dusty

About This Episode

Generated finance podcast with host Dusty based on prompt: Daily stock movements for Tesla. Focus on the stock, but provide any important background information that is necessary.

Transcript

Welcome to "Tesla Stock Daily Drive," where we navigate the high-voltage world of Tesla with you. I'm your host, Dusty, here to sift through the noise and deliver the core truths of today’s market happenings.

Let’s dive right into the latest developments that have Tesla tickers buzzing. This Monday, Tesla's stock has taken a bit of a stumble. After a remarkable climb over the past month, we've seen shares slide down by more than 2%, even dropping as much as 5% earlier in the day. By mid-morning, a slight recovery brought the share price to around $339, down from last week’s closing at $349.97. This marks the end of a four-week bull run during which Tesla celebrated an impressive 45% increase.

But let’s not get swept away by today’s drop. Tesla's stock is still far from its 52-week low of $167.41, although it remains below the year’s high of $488.54. It’s undeniable, though, this week began on a sluggish note, and trading volumes cut through at about 40.8% of the average.

What’s causing this dip, you ask? Well, it seems Tesla isn’t alone. A broader market decline is at play following Moody's downgrade of the U.S.'s creditworthiness. This has stirred a cautious wave across investors, leading many to revisit the fundamentals of the electric vehicle business. Unfortunately, recent figures haven't exactly been Tesla's best friend.

Moreover, investor anxiety over impending sales data from China could be pouring salt into the wound. A significant plunge in Chinese sales registrations, down some 26% in the early days of May, is alarming for Tesla, especially as Europe echoes a similar tale. Complicating matters further is Xiaomi's imminent launch of the YU7 SUV, poised to challenge Tesla's Model Y in China.

First quarter figures showed a delivery drop of 13%, and despite a promising refresh of the Model Y, the recovery trajectory in China appears reticent at best. It’s a turbulent ride ahead, especially as Tesla contends with ever-intensifying competition.

Shifting gears, let’s glance back at the recent upward trends. Tesla rebounded strongly last month, boosted by Elon Musk recommitting his focus to the EV business after scaling back his duties in Washington. Global trade optimism and softened tariffs also lifted spirits across the board.

What are the analysts saying amidst all this? The consensus places Tesla's target at around $287.54, hinting at a potential slide from today's pricing. Brokerage firms are generally advising a 'Hold,' while GuruFocus projects Tesla’s value at around $268.12 in a year’s time. Despite these cautious notes, ARK Invest's Cathie Wood remains optimistic, viewing short-term brand challenges as minor bumps on Tesla's long road ahead.

And let’s not miss out on Tesla's energy division making waves, as they paid Powerwall owners up to $10 million through their expanding virtual power plant programs last year.

As we wrap up, here’s a tidbit for the keen investor: watch out for key technical levels. Support is seen around $289 and $271, while resistance stands firm near $430 to $489. These markers will be critical as Tesla finds its footing in this volatile market.

Thanks for joining me on "Tesla Stock Daily Drive." Remember, it’s a dynamic market, but as always, when the dust settles, only the truth remains. Until next time, keep your eyes on the road and your investment portfolio on a steady track.

Tesla's (TSLA) stock experienced a downturn on Monday, May 19, 2025, after a period of significant gains. Here's a breakdown of the key financial news and market data:

Stock Performance:
* Tesla shares fell more than 2% to around $342 in early trading on Monday. Some sources reported a dip of as much as 5% Monday morning, with shares remaining lower by 3.3% as of 11:35 a.m. ET.
* Another report indicated shares fell 3.12% in mid-day trading, reaching an intraday low of $333.37 before a slight recovery to $339.05. This was down from the previous close of $349.97.
* This decline marked a sluggish start to the week after four consecutive weeks of gains, during which the stock had risen by 45%.
* Despite the day's decline, Tesla's stock is still significantly above its 52-week low of $167.41 but below its 52-week high of $488.54.
* Trading volume was reported at 52,728,866 shares, which is 40.8% of the average daily volume.

Reasons for the Slump:
* Broader Market Decline: The drop in Tesla's stock was part of a wider market downturn. This followed a downgrade of the United States' creditworthiness by Moody's Ratings late on Friday.
* Focus on EV Business Fundamentals: Investors are shifting their focus to the core electric vehicle (EV) business, and recent numbers haven't been promising.
* Concerns over China Sales Data: Anticipation of upcoming sales data from the China Passenger Car Association (CPCA) is creating investor anxiety. Registration data already showed a significant plunge in Chinese sales (around 26%) in April and the first half of May. This is a critical market for Tesla, especially as sales have also been plummeting in many European markets.
* Increased Competition: The announcement that Chinese tech conglomerate Xiaomi will launch its new electric YU7 SUV this week is expected to challenge Tesla's Model Y in the competitive mid-size electric SUV market in China.
* First Quarter Performance: Tesla delivered 13% fewer EVs in the first quarter and showed signs of losing market share. While some attributed this to the refresh of the bestselling Model Y, the anticipated sales push hasn't materialized strongly yet, particularly in China.

Background and Recent Trends:
* Tesla's stock had been in recovery mode, soaring more than 40% in the month prior to this slump.
* This rebound was partly fueled by CEO Elon Musk's announcement that he would renew his focus on the EV maker and spend less time in his Washington, D.C. role.
* Positive news regarding global trade negotiations and lower tariffs had also recently boosted sentiment for Tesla and the broader market.

Analyst Outlook and Other Factors:
* Wall Street analysts, on average, have a target price for Tesla of $287.54, with estimates ranging from $19.05 to $452.00. The average target implies a potential downside from the current price.
* The consensus recommendation from brokerage firms is currently a "Hold" for Tesla stock.
* GuruFocus estimates the GF Value for Tesla in one year to be $268.12, suggesting a potential downside.
* Cathie Wood of ARK Invest acknowledged that CEO Elon Musk's political involvement may have caused some short-term "brand damage" but believes it is not a long-term issue.
* Tesla announced it paid Powerwall owners nearly $10 million through its virtual power plant (VPP) programs in 2024, showcasing growth in its energy division.

Important Levels to Watch (Technical Analysis):
* Investors are advised to monitor key support levels for Tesla's stock around $289 and $271.
* Important resistance levels are near $430 and $489.

In summary, while Tesla's stock had seen a strong recovery in recent weeks, concerns over slowing sales, particularly in China, increased competition, and a broader market dip contributed to its decline on May 19, 2025. Investors are closely watching upcoming sales figures and how the company navigates the evolving EV market.

Tesla Stock Daily Drive