Tesla stock falls 43% from december high on investor concerns

Tesla’s stock has dropped 43% from its December high due to weakening EV demand, growing competition, and investor concerns over profitability. The decline raises doubts about Tesla’s growth trajectory in an increasingly competitive market.

Key factors behind the drop include slowing EV demand amid tighter economic conditions, increased competition from automakers like Ford, GM, and BYD, and Tesla’s price cuts, which have pressured profit margins.

Production slowdowns, supply chain issues, and regulatory challenges in Germany, China, and the U.S. have further weighed on its stock.

Investor concerns about rising interest rates and CEO Elon Musk’s divided focus on other ventures have also contributed to uncertainty. While Tesla’s long-term prospects remain promising, analysts suggest the company must stabilize margins, reassure investors, and navigate competition to restore confidence.