Tesla: Cracks In Foundation Foreshadow Tough 2025 (Rating Downgrade)

Summary:

• Tesla, Inc.’s stock price surged post-2024 election but faces cracks in its foundation, with stagnant sales and declining market share in China and Europe.
• Despite Tesla’s high market cap, it needs to sell 10x more cars to justify its valuation, facing intense competition globally.
• Robotaxis won’t save Tesla’s stock price; competitors in China are already rolling out similar technology with locally produced vehicles, limiting Tesla’s market dominance.
• Strongly consider selling/reducing TSLA stock positions, especially if invested heavily or with retirement savings, due to potential severe downcycle risks.

Introduction

Tesla, Inc.’s (NASDAQ:TSLA) stock price has been on a tear since Donald Trump won the US presidential election in early November 2024. It has doubled in a little over a month from $240/share pre-election to $488/share. To put TSLA’s

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