Tesla (TSLA) Plummets 21% This Year—Will the Elon Musk Magic Spark a Comeback?

Tesla''s stock is bleeding red—down a brutal 21% since January. The electric darling of Wall Street has hit turbulence, leaving investors clutching their portfolios and whispering: ''When does the pain stop?''

Elon''s empire faces its steepest drop in years. Production hiccups, Cybertruck recalls, and that pesky ''are EVs still cool?'' debate weigh heavier than a Model X towing a SpaceX rocket.

Meanwhile, legacy automakers—suddenly flush with hybrid profits—are cackling into their balance sheets. Nothing like a Tesla slump to make Detroit feel young again.

But here''s the kicker: TSLA has danced this tango before. A 21% dip? Child''s play compared to 2022''s 65% nosedive. If history''s any guide, the rebound could be as violent as Ludicrous Mode acceleration.

Bulls whisper about the Robotaxi reveal, the $25k compact car, or maybe just another Elon tweet storm that sends memecoins—and his own stock—into orbit. Because nothing fuels a rally like vague promises and hopium.

So is this the buying opportunity of the decade? Or the start of Tesla''s slow fade into ''remember when'' status? Grab your risk tolerance—and maybe a stiff drink—before deciding.

Wells Fargo Lowers Price Forecast for Tesla Stock

Another firm that’s gone bearish on Tesla (TSLA) stock is Wells Fargo. Analyst Colin Langan notes that Tesla’s fundamental numbers are coming in worse than expected. The bank is expecting second quarter deliveries to be down 21% compared to a year ago, with the firm’s 343,000 estimate approximately 17% below street consensus. This WOULD be another down quarter of sales and deliveries, which Tesla has suffered from numerous times in the last two years.

“New Model Y appears weak given inventory building & promotions. There is also no update on the affordable model, the only driver of 2H [second half of the year] volumes,” Langan wrote in a note to clients. “Order px [pricing] is ~stable, though financing promos & inventory discounts continue. We expect lower margin q/q due to px.” Tesla stock fell 3.88% on Tuesday, with forecasts for the next quarterly earnings now lower.

The upcoming Robotaxi event could provide a catalyst for TSLA’s rebound, according to Elon Musk and numerous analysts. Tesla’s robotaxi rollout has been accelerated and is now set to begin on June 22, 2025, according to an announcement from the Tesla CEO. Upon a successful launch, the company’s stock could accelerate to new highs. CNN analysts forecast TSLA shares to remain around the $306 mark over the next 12 months on average.