Tesla’s shares have plummeted 38% since their all-time closing high in December, as multiple headwinds weigh on the electric vehicle maker. According to Barclays analyst Dan Levy, a reversal of technical factors that drove the previous rally is to blame, along with a weakening of Bitcoin and a broader sell-off among tech titans.
The analyst notes that Tesla’s underperformance coincides with other struggling tech companies in the “Magnificent Seven” cohort, including Microsoft, Amazon, and Meta. Fundamentals, such as weak sales in China and missed deliveries and earnings targets, are also putting pressure on the stock.
Levy warns of a lackluster short-term outlook for Tesla, citing limited catalysts for improvement and soft first-quarter results. However, he remains bullish on the planned launch of Tesla’s Robotaxi service in Austin, Texas, in June, which could build interest and drive the stock higher. Despite this, Barclays predicts a bearish trend for Tesla’s ability to improve profit margins.
Source: https://www.cnbc.com/2025/02/26/why-teslas-stock-is-unraveling-and-what-happens-next-according-to-barclays.html