Tesla Stock: Shares Rebound After Dramatic Downtrend

Tesla's stock has shown signs of recovery following an unprecedented eight-day losing streak that saw the company's share value plummet by over 40% since the beginning of 2025. The electric vehicle manufacturer experienced a notable upturn as its stock rose 4.68% to $235.86 last Wednesday, providing investors with much-needed relief. This positive movement coincided with favorable developments for Tesla's robotaxi plans in California, where the company secured a critical regulatory permit from the California Public Utilities Commission. Additionally, Federal Reserve Chairman Jerome Powell's hints at possible interest rate cuts later this year contributed to the overall market optimism, benefiting Tesla along with other technology stocks.

Analysts Express Concerns About Musk's Priorities

Despite the recent rebound, financial experts remain cautious about Tesla's long-term prospects. Prominent analyst Dan Ives from Wedbush Securities has openly criticized CEO Elon Musk's leadership, stating there are "little to no signs" of his active involvement with Tesla while he increasingly focuses on political activities, particularly his support for the Trump administration. Shortsellers have capitalized on Tesla's struggles, earning approximately $16.2 billion in the past three months according to data from S3 Partners. Analysts have downgraded their expectations for Tesla's upcoming quarterly results, projecting vehicle deliveries of around 435,000 units—representing just 12% growth compared to the previous year. Weak sales figures from European and Chinese markets remain particularly concerning for investors.

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Source StockWorld