Tesla, Inc. (NASDAQ: TSLA) stock is making headlines again as it claws back gains following a rollercoaster week of dramatic swings. As of Friday, March 14, Tesla shares rose over 3% during the trading session, contributing to a broader tech-led market rebound that saw the S&P 500 and Nasdaq post their best day since November. The stock’s upward movement comes after a punishing decline earlier in the week, including a staggering 15% drop on Monday, March 10—its worst single-day performance in nearly five years—erasing post-election gains tied to President Donald Trump’s victory in November 2024.
Presidential support, broader market rally
The catalyst for Friday’s recovery appears twofold. First, President Trump’s recent comments expressing intent to purchase a Tesla vehicle have reignited investor optimism. Trump, speaking earlier this week, called Tesla a “great company” and suggested his support could bolster the electric vehicle (EV) maker’s domestic sales—a nod to CEO Elon Musk’s prominent role in Trump’s administration, including his involvement in the Department of Government Efficiency. This endorsement follows a period of turbulence for Tesla, partly attributed to backlash over Musk’s political alignment, which some analysts argue has dented the company’s brand value, particularly in left-leaning markets like California.
Second, Tesla’s rebound aligns with a broader market rally driven by Big Tech. Alongside gains in Meta, Microsoft, and Amazon—all up more than 2% on Friday—the tech-heavy Nasdaq Composite surged 1.2% earlier in the week, with Tesla joining Nvidia in leading the charge. This comes despite ongoing concerns about Tesla’s fundamentals, including a 50% stock drop since its December peak and analyst downgrades from firms like UBS and JPMorgan Chase, which have slashed price targets amid weakening EV demand and competitive pressures from China’s BYD.
Bearish sentiment still weighs on stock
Earlier this week, Tesla faced a barrage of bearish sentiment. On Monday, UBS cut its price target from $259 to $225, citing a grim near-term outlook for Model 3 and Model Y demand, while JPMorgan maintained a sell rating with a $135 target, implying a potential 60% further decline. The stock hit its lowest level since early November, with Monday’s tumble wiping out roughly $15 billion in market value. Analysts pointed to slowing vehicle sales, Musk’s divided focus between Tesla and his political ventures, and a cooling EV market as key headwinds.
Yet, glimmers of hope emerged midweek. On Tuesday, Musk countered the negativity by announcing plans to double U.S. production, a statement that helped Tesla bounce back 7% that day. Combined with Trump’s backing, this fueled a narrative of resilience for the EV pioneer. Yahoo Finance’s Jared Blikre noted that market volatility and tech sell-offs had dragged Tesla lower, but Friday’s gains suggest some investors are buying the dip, with technical analysis hinting at a potential bottoming out.
Worst performing stock in the S&P 500
Despite the recovery, Tesla remains the worst-performing stock in the S&P 500 year-to-date, down significantly from its record high of $479 in December 2024. Evercore ISI recently lowered its delivery estimates, projecting fewer vehicles shipped in 2025 than in 2024, adding to concerns about growth. Still, optimists like ARK Invest’s Tasha Keeney argue Tesla’s long-term potential lies beyond cars, in AI and robotics—areas Musk continues to tout as the company’s future.
As Tesla stock oscillates between Musk-driven headlines and market fundamentals, investors are left weighing whether this is a buying opportunity or a warning sign. For now, Friday’s rally offers a reprieve, but with trade war fears and economic uncertainty looming, the road ahead for Tesla remains as unpredictable as its CEO’s next move.