Analyst: TSL stock is trading "by gut feeling," with downward pressure taking the lead

Shen Chao TechFlow news, on March 12, according to Jin Shi’s report, TSL’s stock price has big dump by 52% from the historical high in mid-December 2024, even with the high-profile support from US President Trump, it is difficult to reverse the market sentiment. Trump purchased a red Model S on Tuesday and sent it to the White House, causing TSL’s stock price to Rebound by 3.8% after big dump by 15% on Monday. However, investors are concerned that this big dump in stock price is far from over, and TSL has pullbacked all gains since the election.

Zacks Investment Management’s client portfolio manager Brian Mulberry said, “This stock is now trading on instinct, with downward pressure dominating; in the short term, it’s easy to fall to $200 or even lower.” In the past week, at least four analysts have lowered the target price of TSL, while two long-term bullish analysts have issued warnings about poor sales.

TSL faces multiple challenges: no recent updates on fully autonomous or self-driving taxi; Musk’s focus is scattered due to working on government efficiency department; Republican government opposes electric vehicle policies; global sales decline; Musk’s involvement in politics damages brand image. Despite retail traders net buying $2.8 billion TSL shares since last Tuesday, market confidence remains low.

As of the Monday close, the forward P/E ratio of TSL stock is 75 times, far higher than the average level of 25 times for the ‘Seven Giants of Tech’ and 20 times for the S&P 500 index. The options market shows that the one-month implied volatility has reached the highest level since the end of 2022, when the TSL stock price fell to around $100.