Tesla ( (TSLA) ) has fallen by -7.18%. Read on to learn why.
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Tesla’s stock has experienced a decline of 7.18% over the past week, despite initial excitement surrounding the company’s Robotaxi launch. The launch, which initially boosted shares by 8%, was limited in scope and faced operational issues, such as vehicles driving the wrong way and abrupt braking. These incidents have drawn regulatory attention and raised concerns about the maturity of Tesla’s self-driving technology, contributing to the stock’s downward movement.
The stock’s valuation has also been a point of contention, trading at a high multiple compared to peers and the broader market. Tesla’s shares are priced at 169 times its 2025 earnings estimates, significantly higher than other major tech companies like Microsoft and Amazon. This extreme valuation, coupled with CEO Elon Musk’s controversial public persona, has added to investor skepticism, leading to a more cautious outlook on the stock.
Analysts remain divided on Tesla’s future prospects, with some maintaining a bullish stance due to the company’s potential in autonomous driving, while others highlight the risks associated with its high valuation and recent controversies. The average analyst price target suggests a potential downside, reflecting the mixed sentiment on Wall Street. As Tesla continues to navigate these challenges, investors are closely watching its next moves in the competitive autonomous vehicle market.