Tesla TSLA Plunges 6.64% as Tech Sell-Off Powerwall Recall and Slowing China Europe Demand Weigh

Tesla Inc. (TSLA) plunged 6.64% in pre-market trading on Nov. 14, 2025, as broader tech sell-offs and recent corporate developments weighed on investor sentiment.

The selloff followed a 10% decline since shareholders approved Elon Musk’s $1 trillion pay package at the Nov. 6 annual meeting, with analysts attributing the drop to uncertainty over long-term value realization. Compounding concerns, Tesla announced a recall of 10,500 Powerwall 2 battery systems due to fire risks, raising safety and regulatory scrutiny. Meanwhile, the company faces slowing demand in key markets like China and Europe, though it continues advancing AI-driven initiatives, including robotaxi testing and Optimus humanoid robot production plans.

Analysts remain divided. While Wedbush’s Dan Ives remains bullish on Tesla’s AI and autonomous vehicle ambitions, others highlight valuation risks and competitive pressures. Retail investors, however, have continued buying Tesla shares, adding $1.1 billion in the past week despite the recent volatility.

Backtest assumptions suggest a strategy focusing on Tesla’s AI and robotics segments could outperform over a 12–18-month horizon, provided regulatory risks and demand recovery materialize. Position sizing and stop-loss parameters would need to align with broader market trends and earnings catalysts.