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Tesla (NASDAQ: TSLA) Stocks have always been on a roller coaster, but not as much as today.
Elon Musk, founder of the company’s Mercurial, is splitting investors like never before. After connecting with Donald Trump, the hype was up to the age of 11. Following this week’s tariff shock, we raced past 12 or 13.
After the presidential election last November, he was a affiliated investor with Trump Tesla. By December 18, 2024, Tesla stocks had flew to a 52-week high, just over $488. As I write, it plummeted to 45% to $267.
Will Elon Musk be able to bounce back now?
Those who invested £10,000 at that December peak are sitting at a 45% paper loss. Their investment is now worth just £5,500.
That said, despite recent volatility, those who invested £10,000 in Tesla a year ago are still up 56%. Their shares are worth £15,600. Recent dips are in sight.
The big question is what happens next. China fought back with a 34% tariff on US imports, sending the market into another spiral. Tit-for-Tat retaliation was inevitable, but it only exacerbates the bad situation.
Musk may or may not have distanced himself from Trump, but whether he can repair his reputation among Tesla’s more free-hearted clients is another matter.
The anti-Tesla campaign may gather pace as tariffs chew. The outlook for the group’s electric vehicle (EV) business looks difficult, especially as China and Europe are such important markets.
Many argue that Tesla has moved beyond EVs and is now about energy storage, robotics and self-driving cars. That may be true, but if the world decides it has enough musk, does it help?
The latest results, released on April 2, saw sales plummet to the lowest levels in three years.
The company fell 13% year-on-year to approximately 337,000 vehicles in the first quarter of 2025. Competition with Chinese rivals byd It’s been strengthened, but the role of mask polarization in the Trump administration doesn’t help. All I can do is imagine what the Q2 sales will look like.
Very unstable growth play
Despite the decline, Tesla remains eye-openingly expensive, with prices and returns of around 131. There are almost no bargains.
42 analysts tracking stocks set a median one-year price target, just over $352. If it’s correct, that’s a 32% jump from today.
However, most of these predictions are outdated. Given Tesla’s constant and extreme news flow, there’s nothing to rely on.
For years, Tesla has been priced far beyond what its basics justifies, driven by a cult of masks. But now the cult is at risk of collapse. It’s probably time for investors to stick to numbers.
I wanted to take a punt a few days ago, but I have never owned a Tesla shares. Musk is the wrong person to amortize it. As Trump eased his tariff stance, all market recovery mothers could see Tesla leading the charges.
But anyone who buys Tesla stocks today needs to embrace the risk. Some even called on him to quit being CEO. Does that help? Perhaps it’s not the case.
For many, musk is Tesla. But for investors, that may no longer be a good thing. In my view, only pure gamblers or true followers should consider buying Tesla stocks today.
