Tesla stock dropped over 40% due to concerns over Musk's absence and market conditions

From Nasdaq: 2025-03-13 10:11:00

In 2024, Tesla stock soared after a Trump victory and shareholder approval of Elon Musk’s pay package. But in 2025, TSLA shares plummeted over 40%, sparking concerns over Musk’s absence, falling sales, and market conditions.

Billionaire investor Ron Baron remains bullish on Tesla, citing the upcoming Robotaxi rollout. He believes Tesla’s Robotaxi will be more cost-effective and generate higher margins compared to Alphabet’s Waymo, which costs significantly more.

Reports of vandalism against Tesla amid Elon Musk’s political activities led to pledges of support, including from Trump. Despite this, Morgan Stanley made a bullish call on Tesla, seeing the price pullback as a buying opportunity with a target of $800 per share.

While Musk takes blame for Tesla’s stock price drop, market weakness also plays a role. TSLA is at a critical point with 8 consecutive down weeks and oversold RSI levels. The crisis presents both volatility and opportunity for Tesla investors, according to Morgan Stanley and Ron Baron.



Read more at Nasdaq: Zacks Investment Ideas feature highlights: Tesla, Alphabet and Morgan Stanley