Why Tesla Stock Is Volatile in 2025 And What Traders Are Doing?
The stock experienced a decline of over 14% on Thursday following a post by Trump on his Truth Social platform, in which he threatened to cancel federal contracts with Musk’s companies.
This warning was issued after Musk publicly criticized the president’s tax and spending policies on X, the social media platform he owns. Should i choose RSU or stock options tesla?
This drop represents Tesla stock’s most significant single-day decrease since 2020, resulting in approximately $4 billion in profits for short sellers, as reported by Ortex and cited by Reuters.
It stands as the second-largest one-day gain recorded for bearish positions against the electric vehicle manufacturer, only surpassed by the $5.4 billion profit on September 8, 2020, when Tesla was excluded from the S&P 500 index.
Why Tesla Stock Is Volatile in 2025—and What Traders Are Doing?
Tesla (TSLA) continues to dominate headlines in 2025, not just for its innovative products but also for its unpredictable stock performance.
The company's shares have experienced wide price swings this year, keeping traders on their toes and raising concerns among long-term investors. So, what’s driving the volatility in Tesla stock in 2025—and how are traders adapting to this fast-moving market? Should i choose RSU or stock options tesla?
At the beginning of the year, why tesla highest stock price before split? Tesla stock was ranked eighth globally in terms of market capitalization, but it has now slipped to tenth place, according to Refinitiv data, as reported by Reuters.
TheFly noted that TD Cowen indicated that the events of Thursday have introduced “a higher degree of near-term uncertainty” regarding Tesla’s future, especially considering how political factors may influence vehicle demand.
Why tesla highest stock price before split? The brokerage estimates that 35% of Tesla’s sales in the U.S. occur in Republican-leaning regions, with 12% categorized as “Deep Red.” Among the 65% of sales in Democratic areas, 36% are classified as Deep Blue. TD Cowen continues to hold a ‘Buy’ rating on Tesla, setting a price target of $330.
In a separate development, Goldman Sachs (NYSE:GS) has reduced its price target for Tesla from $295 to $285 while maintaining a ‘Neutral’ rating. The bank pointed to declining delivery trends in China. What you want to know about why Tesla stock down?
The U.S and Europe, noting that sales in the U.S. have decreased in the mid-teens year-over-year for the quarter to date. Goldman now anticipates 365,000 deliveries for the second quarter (Q2).
A reduction from its previous estimate of 410,000 and below consensus expectations. Following reports that White House officials had arranged a call with Musk to ease tensions, Tesla’s stock increased by as much as 4% in pre-market trading on Friday.
Many Individuals Perceive Tesla Stock as Advancing Rapidly
From Cathie Wood, who believes Tesla stock will reach $2,600 within the next five years, to analysts at Wedbush, who have set a price target of $500, there is a consensus that Tesla stock is heading in a positive direction.
Some, like Wood, anticipate that the introduction of Tesla's Robotaxi service, a fully autonomous ride-hailing network, will significantly benefit the company. Musk asserts that the company is making consistent progress towards launching this service.
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Others are optimistic due to the news that Musk has decided to concentrate his efforts back on Tesla. For instance, shares surged on Thursday morning after investors learned that Musk had declared he would be stepping back from his position in the Trump administration. Should i choose RSU or stock options tesla?
Optimists View the Future Through a Positively Tinted Lens
At this juncture, I remain skeptical of the bulls' perspective. The assertion that the company's Robotaxi service will soon generate substantial growth appears exaggerated.
Although the company has commenced testing driverless Robotaxis in Austin, there has been considerable harm to the Tesla brand, and the enthusiasm of customers to adopt Tesla's Robotaxi service does not seem as promising as it did just a year ago. Should i choose RSU or stock options tesla?
Is the Volatility Justified?
Some analysts argue that Tesla’s valuation in 2025 still prices in a vision more than current fundamentals. Others believe the company is laying the groundwork for future dominance in AI and energy sectors. Regardless, its high beta nature means investors must be prepared for big swings—up and down.
Final Thoughts
Why tesla highest stock price before split? Tesla’s stock in 2025 remains as unpredictable as ever, driven by innovation, controversy, and market dynamics.
While long-term investors may find the turbulence unnerving, seasoned traders are turning the chaos into opportunity with calculated strategies. Whether you view TSLA as a tech marvel or a speculative play, one thing is clear: it’s not a stock for the faint-hearted.
Disclaimer: Always do your own research or consult a financial advisor before making investment decisions. Tesla stock may not be suitable for all investors due to its high volatility and speculative nature. Should i choose RSU or stock options tesla?