In This Article:
What Happened?
Shares of electric vehicle pioneer Tesla (NASDAQ:TSLA) fell 4.4% in the afternoon session after data revealed the company had a rough February (2025) in China, with sales falling by almost half. According to the China Passenger Car Association, Tesla sold approx. 30,000 vehicles. That's a steep drop, raising questions about demand, competition, and how Tesla is navigating China's ever-evolving EV market.
The shares closed the day at $271.99, down 4.5% from previous close.
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What The Market Is Telling Us
Tesla’s shares are extremely volatile and have had 116 moves greater than 2.5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was a day ago when the stock gained 3.3% on the news that Morgan Stanley analyst Adam Jonas named the stock a "Top Pick," citing the potential in the autonomous vehicle market and robotics. Jonas added that "Tesla's YTD auto deliveries have been mostly below expectations, but not particularly narrative changing. Tesla's softer auto deliveries are emblematic of a company in the transition from an automotive 'pure play' to a highly diversified play on AI and robotics."
Separately, CEO Elon Musk stated on social media platform X over the weekend that Tesla's profits could potentially grow by more than 1,000% over the next five years. But he didn't sugarcoat it, saying that kind of growth would take "outstanding" execution.
And let's be real, Tesla has a history of setting ambitious targets that aren't always easy to meet. Still, Musk's remarks could offer some reassurance to investors, especially with the stock struggling lately. It could also be interpreted as a sign that the company isn't backing down and is still focused on delivering big results.
Tesla is down 27% since the beginning of the year, and at $276.97 per share, it is trading 42.3% below its 52-week high of $479.86 from December 2024. Investors who bought $1,000 worth of Tesla’s shares 5 years ago would now be looking at an investment worth $5,543.
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