Tesla shares are experiencing a notable decline, driven by a combination of profit-taking and concerns over the stock's valuation following a significant post-election rally. As of December 20, 2024, Tesla's shares have dropped 5% in premarket trading, extending losses from earlier in the week. This downturn follows a period of substantial gains after Donald Trump's election, which had initially boosted investor sentiment due to CEO Elon Musk's anticipated influence in Washington. Despite the recent rally, analysts have raised concerns about Tesla's stock being overvalued, with a fair value estimate significantly lower than its current trading price. Additionally, Tesla's sales in Europe have seen a double-digit decrease, further contributing to the bearish sentiment surrounding the stock.
The Graniteshares 2x Long TSLA Daily ETF (TSLR) is down 10.22% in premarket hours on Friday, December 20, falling to $46.01 as of 6:30 AM ET.