Tesla Stock Is Spiraling. Here's Why This Sell-Off Is Different
Last year ended in record fashion, but Tesla has been declining for a few weeks now.
After finishing 2024 with a meteoric rise in its share price, Tesla (NASDAQ: TSLA) has been sliding since the start of the new year. The company reported earnings on Jan. 29, and the stock has declined by as much as 15% since. So far, in 2025, the stock has generated a negative return of 12% (as of market close on Feb. 14).
While it is true that sales in Tesla's core electric vehicle (EV) segment are decelerating, I think there is a more subtle reason for the sell-off. Below, I'm going to explore what I see as the root of the shares' decline and make the case for why now is a good opportunity to buy the dip.
The chart below illustrates the fluctuations in Tesla's share price from Oct. 1 through Feb. 14. Notice anything?
