In recent months, shares of Tesla (Nasdaq: TSLA) have been on a whole ride. After the election victory of President Donald Trump on November 5, Tesla shares rose by no less than 91%. Tesla co-founder and CEO Elon Musk’s close relationship with the president has largely been seen as an asset-particularly the potentially friendly regulations for the ambitions of the company Electric Vehicle (EV) to drive autonomously.
Since the beginning of the year, however, the Tesla shares have returned some of their election -driven profits. So far, the stock has fallen by around 10% in 2025 while I write this.
Let’s look at some of the factors that influence the Tesla shares of recent times and I will argue for why now is a great opportunity Buy the dip Handy fist.
A combination of things has weighed on Tesla stock in recent weeks. To begin with, the financial results of the fourth quarter and the financial results of the company and the full year were less than fantastic. While the energy storage and service companies of the company sparkled, the core operation flowed up. The turnover of EVs fell by 6% years after year, as a result of which some investors increase pessimism about the power of the economy, as well as the position of Tesla compared to competition, both in the interior and abroad, especially in China.
Moreover, Trump has already fulfilled in one campaign bow: imposing rates. And he has threatened more. One of the Countries that are confronted with a new rate policy Is China, an important market for Tesla. Given how new this policy is, there are many strangers who revolve around how different countries will react and how trade can be influenced. This is all to say that Tesla can be theoretically negative influenced by new tariff discussions.
Finally, Musk has spent quite some time in Washington, because he leads the initiative of the cost -saving “Department of Government Efficiency” by Trump. His time spent in Washington has led some investors to worry that he might be too derived and concentrates less on Tesla.
I will admit that all three points contain some merit. But before we press the panic button, let’s regroup and consider some other topics.
Despite a silly winning report, Musk made his usual call and managed to make investors enthusiastic about the future of Tesla. He brought most of the call by talking about artificial intelligence (AI), and how Tesla uses the technology to sharpen his self -driving automotive software and to build a fleet of humanoid robots called Optimus. These areas are where Wall Street seems to concentrate.