Tesla Shares Plunge Below $215 Amid Market Slump

Tesla's stock has faced significant challenges in 2025, dropping over 50% from its December peak, including a recent fall below $220, raising concerns about its future performance. Analysts attribute the decline to a combination of macroeconomic factors, increased competition from companies like BYD, and internal struggles with sales and deliveries, which have been affected by upcoming product launches and market saturation. Investor sentiment is mixed; while Cathie Wood remains optimistic about a potential surge to $2,600 per share, others express skepticism, citing slowing sales and rising inventory levels as signs of deeper issues. Morgan Stanley's Adam Jonas highlights the broader implications of Tesla's technology in the evolving economic landscape, particularly regarding AI and robotics. Meanwhile, Elon Musk's political controversies and operational focus have prompted critiques of his leadership's impact on Tesla's market position. As the company navigates these turbulent waters, its future remains uncertain amidst rising competition and economic pressures.