Tesla's stock is facing pressure as it navigates a complex landscape of high expectations and potential execution risks. The company's valuation has soared to unprecedented levels, driven by optimism surrounding its Full Self-Driving (FSD) technology and robotaxi initiatives. However, analysts are cautioning that the stock's current premium leaves little room for error, especially as the market anticipates the impact of the Trump administration's policies on Tesla's autonomous mobility ambitions. This heightened valuation, coupled with the company's significant contribution to recent growth stock rallies, is raising concerns about sustainability, particularly as the broader market begins to question the durability of such concentrated gains.
Adding to the pressure, Tesla's stock experienced a notable decline of 2.7% in premarket trading on December 18, 2024. This drop is part of a broader trend where tech stocks, including Tesla, are facing scrutiny over their recent rallies. The market's skepticism is further fueled by the realization that Tesla's post-election surge, largely attributed to Elon Musk's perceived political connections, may not align with the company's earnings reality. As a result, investors are becoming increasingly cautious, leading to a pullback in Tesla's stock price.
The Graniteshares 2x Long TSLA Daily ETF (TSLR) is currently trading at $62.18, reflecting a 0.63% decrease from its previous close.