Tesla Stock Expected to Slow after Wednesday’s Massive Jump
Over the past few months, Tesla (TSLA) stock has dropped more than 41%, but on Wednesday, the stock price shot up 17% in response to a 90-day tariff pause from President Donald Trump.
Tesla stock is down 3.67% in premarket trading for Thursday after Wednesday’s shocking increase. As the price settles after Trump declared a three-month pause for tariffs, investors are dealing with a very unstable and unpredictable market.
Stock indices rose in response to the announcement, further helped by a 10% reduction on reciprocal tariffs. The Dow Jones, S&P 500, and Nasdaq all climbed drastically as the market made back much of the ground it lost last week following a tariff announcement from Trump.
How Tesla Stock Is Likely to Perform
For the short term, it looks like Tesla stock could do very well, but there is still the problem of flagging sales. Quarterly sales dropped by 13% for the beginning of 2025, prompted by production delays and changing public opinion over Tesla CEO Elon Musk. With public protests against Trump’s politics with spillover to Musk as well, the very public face of Tesla has managed to bring down the wrath of left-leaning activists on his electric car company.
In recent weeks, 80 Tesla vehicles were vandalized in Hamilton, Ontario alone, with reports of attacks on Tesla vehicles and their owners coming in from all around the world.
Public opinion is not likely to shift in favor of Tesla and Musk anytime soon, as the entire company has been politicized by the media, helped along by Musk’s right-leaning social media posts. This will hold Tesla stock back from wider market appeal for at least as long as Musk is working with the U.S. government. That partnership is expected to last until July 4th, 2026.
We expect that Tesla stock will continue to experience difficulty in climbing back up to its previous highs for the near future but should enjoy a short boost from the recent tariff announcement. With Musk’s focus directed away from the company for now and no major releases expected from the company in the near future, this could be a stock that continues to perform poorly throughout much of 2025.
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