Tesla Stock Plummets 7.27% But Remains Second Highest Traded Stock

On April 10, 2025, Tesla (TSLA) experienced a significant decline, with its stock price dropping by 7.27%. The company's trading volume reached $451.46 billion, making it the second-highest in the market for the day.

Analysts have noted that much of the negative sentiment towards Tesla is already reflected in its current stock price. CFRA analyst Garrett Nelson highlighted that Tesla's auto sales likely hit a low point in the first quarter of 2025, primarily due to the seasonal weakness in the automotive industry and the temporary idling of all four of Tesla's vehicle factories. Despite this, Nelson remains optimistic about Tesla's future, citing the company's strong balance sheet and the growing demand for its battery storage business, which has higher margins than its electric vehicle segment.

Nelson also pointed out that Tesla's exposure to the Trump administration's tariffs is relatively low compared to other automakers, as Tesla vehicles are predominantly manufactured in the United States. This positions Tesla to potentially gain market share in the U.S. market.

Cox Automotive's data revealed that Tesla's average transaction prices (ATP) for the Model Y and Model 3 increased in March 2025. The ATP for Tesla vehicles was estimated at $54,582, marking a year-over-year increase of 3.5% and a month-over-month increase of 4.5%. This rise can be attributed to the rollout of the Tesla Model Y Launch Series, a limited-edition variant priced just under $60,000.

ARK Invest's Cathie Wood remains bullish on Tesla, predicting that the company will launch a more affordable electric vehicle starting at around $30,000. Wood believes that Tesla's robotaxi service will also help consumers save on upfront costs, making it a more attractive option compared to traditional ride-sharing services. She also noted that Tesla's heavy North American sourcing will mitigate the impact of Trump's tariffs, allowing the company to continue its growth trajectory.

Benchmark analyst Mickey Legg echoed Wood's optimism, stating that the negative narrative surrounding Tesla is exaggerated. Legg encouraged investors to focus on the catalysts that could drive Tesla's stock price higher, such as its AI developments and the upcoming launch of more affordable EV models. Legg also noted that Musk's reduced involvement with the government could lead to a significant rebound in Tesla's stock price.