Tesla's shares are experiencing a notable decline, driven by a combination of profit-taking and concerns over the company's future growth prospects. As of December 20, 2024, Tesla's stock has dropped 5% in premarket trading, extending losses from earlier in the week. This decline follows a significant 8% drop on Wednesday, marking the worst day for Tesla shares since before Donald Trump's presidential election victory. The initial post-election rally, fueled by investor optimism over potential regulatory benefits under Trump's administration, appears to be losing momentum. Additionally, Tesla's recent recall of nearly 700,000 vehicles in the U.S. due to a tire pressure monitoring system issue, although manageable through software updates, adds to the negative sentiment.
The Graniteshares 2x Long TSLA Daily ETF (TSLR) is down 10.54% in premarket hours on Friday, December 20, falling to $45.85 as of 7:15 AM ET.