Tesla's Tumultuous Week: Recalls, Stock Slips, and a $2 Trillion Vision
1min read As of last week, Tesla (TSLA) shares declined 3.46%, marking three consecutive days of losses, with a cumulative drop of 12.25% over the past three days. The stock fell 3.48% over the past week but has surged 69.45% year-to-date, with the company’s market capitalization currently standing at $1.35 trillion.
Recently, Tesla announced a recall of nearly 700,000 vehicles due to an issue with the tire pressure monitoring system warning light, which affects the 2024 Cybertruck, 2017-2025 Model 3, and 2020-2025 Model Y. This problem was identified by the National Highway Traffic Safety Administration (NHTSA), which noted the malfunction could prevent warning lights from illuminating during driving cycles, increasing the risk of accidents. Tesla plans to address this via a complimentary online software update, with owner notifications scheduled for February 15, 2025.
This recall is part of a series of safety recalls Tesla has faced, including a recent recall of 2,400 Cybertrucks due to a "drive inverter fault" that might cause power loss to the wheels, and a July recall of over 1.8 million vehicles due to hoods potentially opening unexpectedly while driving.
Tesla's focus extends beyond current challenges, with efforts underway to establish Austin as a potential launch site for autonomous vehicle fleets within Texas. Discussions have involved local authorities, aiming to align deployment with safety expectations and appropriate training for emergency responders.
Market sentiments remain cautiously optimistic. Mizuho Securities recently upgraded Tesla's stock rating to "outperform" with a target price of $515, citing opportunities in self-driving and robotaxi sectors due to anticipated regulatory leniency. Additionally, potential policy reforms from the Trump administration could position Tesla more favorably due to its lower electric vehicle production costs relative to competitors.
Long-term speculation remains bullish, as evidenced by Wedbush analyst Dan Ives raising his Tesla target price to $515, with an optimistic scenario predicting a possible rise to $650. Ives highlights potential policy shifts as game-changers for autonomous vehicles and AI, which could drive Tesla towards a $2 trillion market capitalization in the next 12 to 18 months.
Investors are now eyeing Tesla’s upcoming announcements, with the company's fourth-quarter delivery figures expected in two weeks and financial results roughly a month later.
