Tesla stock has fallen 44% in 2025, with predictions of a further 38% decline

From Nasdaq: 2025-03-19 06:00:00

Shares of Tesla (NASDAQ: TSLA) have plummeted by 44% in 2025, compared to smaller declines in the S&P 500 and Nasdaq. Despite this, Tesla is still up 37% over the last 12 months. Factors like softening EV demand and competition from BYD are contributing to the sell-off, with analyst Aswath Damodaran predicting a 38% decline in Tesla’s stock price to $148.

Damodaran’s concerns about Tesla’s challenges in the EV market are valid, with revenue and production declining. The competition from BYD, especially in the mass market, poses a threat. Musk’s political involvement also raises questions about the company’s focus. Despite Damodaran’s bearish outlook, Tesla’s potential in AI and robotaxis could drive future profitability, making long-term gains possible.

Damodaran’s 10-year forecast for Tesla may be conservative compared to Wall Street estimates for AI-driven profits. Tesla’s success with robotaxis will be crucial for sustained growth. While short-term pressure on Tesla’s stock is expected, a long-term investment approach could yield significant gains. Dollar-cost averaging during market dips could be a strategic move for patient investors eyeing Tesla’s potential breakthroughs in AI.



Read more at Nasdaq: Down 51% From All-Time Highs, Could Tesla Stock Keep Falling? The “Dean of Valuation” Has a Clear Prediction.