Tesla's stock is experiencing a downturn on December 18, 2024, as market sentiment shifts amid concerns over the sustainability of its recent rally. The company's stock had been a significant contributor to the growth stock rally, but analysts are now questioning the durability of this momentum. The optimism surrounding Tesla's ties to political figures is being scrutinized, with fears that it may not align with the company's earnings reality. Additionally, the broader tech sector is facing pressure, as indicated by the cap-weighted S&P 500's precarious position in December, further impacting Tesla's performance.
The electric vehicle sector is also facing headwinds, with a downgrade in Rivian's stock due to sluggish EV sales projections for 2025. This downgrade reflects broader concerns about the EV market's growth potential, especially with anticipated policy changes under the incoming administration that could affect incentives for EV purchases. These factors contribute to a challenging environment for Tesla and its peers, as the market reassesses the growth prospects of the EV sector.
The Graniteshares 2x Long TSLA Daily ETF (TSLR) is down 6.56% to $58.47 as of 2:47 PM ET on December 18th.