Analyst: Tesla stock is trading on "gut feeling," with downward pressure dominating

ChainCatcher news, according to Jinshi reports, Tesla's stock price has plummeted 52% from its historical high in mid-December 2024, and even the high-profile support from U.S. President Trump has failed to reverse market sentiment. On Tuesday, Trump purchased a red Model S to send to the White House, causing Tesla's stock price to rebound 3.8% after a 15% drop on Monday. However, investors are concerned that this stock price crash is far from over, as Tesla has now given back all its gains since the election.

Brian Mulberry, a portfolio manager at Zacks Investment Management, stated, "This stock is now trading on sentiment, and downward pressure is dominating; in the short term, it could easily drop to $200 or even lower." In the past week, at least four analysts have downgraded Tesla's target price, and two long-term bullish analysts have issued warnings about poor sales.

Tesla faces multiple challenges: the hope for a full self-driving or autonomous taxi update is unlikely in the near term; Musk's focus on government efficiency work is distracting; the Republican government opposes electric vehicle policies; global sales are declining; and Musk's political involvement is damaging the brand image. Despite retail traders net buying $2.8 billion in Tesla stock since last Tuesday, market confidence remains low.

As of Monday's close, Tesla's forward price-to-earnings ratio is 75 times, far exceeding the average of 25 times for the "Big Seven" tech stocks and the average of 20 times for the S&P 500 index. The options market indicates that the one-month implied volatility has reached its highest level since the end of 2022, when Tesla's stock price had fallen to around $100.