
Trump may be buying a Tesla from Musk, but TSLA stock is still flat after yesterdays massive sell-off
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Shares in Elon Musks Tesla, Inc. (Nasdaq: TSLA) have gained very slightly in early morning trading today after the stock crashed around 15% yesterday. The decline in TSLAs share price yesterday, which saw shares hit lows of around $215 before closing at just north of $222, was the electric vehicle makers worst single-day drop in nearly half a decade.Heres what you need to know about Tesla stock this morning.What is Teslas stock price?As of the time of this writing, TSLA shares are trading at about $224 apiece. Thats about a half-percent gain since markets opened. Shares had climbed over 5% before giving up much of those early gains.But any share price gain will likely be music to many Tesla investors ears. This is especially true after yesterdays more than 15% fall in Teslas stock price. It signals the bleeding may have stoppedat least temporarily.Why did Tesla shares crash yesterday?While Tesla was one of the biggest losers on the stock market yesterday, its important to note that very few major stocks performed well. In fact, all the major stock markets declined significantly yesterday, including the Nasdaq, S&P 500, and Dow Jones. The market crash followed President Trumps comments that he couldnt rule out the possibility of America entering a recessiona scenario economists have long feared after Trumps insistence on raising tariffs on goods from Americas largest trading partners.That said, TSLA shares were among the hardest hit yesterday. Theres no doubt that TSLA shares fell partly due to the broader market sell-off, but that sell-off likely also acted as an accelerant for investors who were already concerned about the companys declining share price in recent weeks.Since the beginning of the year, Tesla shares have plunged a staggering 45%, and last week, the company lost all the gains it had made since the Trump bumpthe colloquial term for the dramatic growth TSLA shares experienced following Donald Trumps victory in the U.S. presidential election.On November 4, TSLA shares closed at approximately $242. By mid-December, TSLA shares reached an all-time high of over $488. However, since Trump took office, Tesla shares have plummeted, dropping from a peak of around $433 the day after Trumps inauguration to as low as $215 just yesterday.In the run-up to yesterdays crash, investors have become increasingly concerned about falling Tesla sales in many key markets, including China and Europe. Teslas declining sales in Europe have come after Elon Musk spent the latter part of 2024 propping up a far-right party in Germany.Domestically, investors are worried that Musks involvement with the so-called Department of Government Efficiency is alienating Teslas core customer base: liberal progressives who previously flocked to Tesla EVs because of their concerns about climate change. However, Musks closeness to Trump and his role in the administrations cuts of tens of thousands of jobs from the federal workforce, coupled with his insistence on voicing his divisive political views, have turned many off the brand.In recent weeks, Tesla showrooms across the country have also become demonstration points for protestors seeking to voice their grievances against both Elon Musk and the Trump administration.All this means investors worry Teslas brand image may be being harmed beyond repair. Many fear the tarnishment of the brand will lead to decreased sales in the future.Why were Tesla shares up today?Its impossible to pinpoint one reason why Tesla shares were up briefly today. However, one of the most likely reasons is that, after yesterdays massive sell-off, some investors saw the stock as being on sale and bought shares while they were discounted. Its common to an extent for shares in a company to recover somewhat in the days following a major sell-off.Yet as of the time of this writing, TSLA shares have now given up those early modest gains.The only other news around Tesla in the past 24 hours is that President Trump has openly signaled his support for the company after yesterdays stock price fall. In a move that would be unusual for most presidents, Donald Trump posted on his Truth Social network yesterday that he is going to buy a brand new Tesla tomorrow morning as a show of confidence and support for Elon Musk.However, it is unlikely that the presidents open support of Musk and Teslaand the promise to buy one of its vehiclesis a significant mover behind the stocks price today.Where does Teslas share price go from here?Where TSLA shares go from here is anyones guess. In January, JP Morgan issued the stock a $135 price target. If accurate, Tesla shares could still fall nearly $100 per share.However, other analysts still maintain much higher price targets for the stock. According to data from Yahoo Finance, Wedbush has a $550 price target for TSLA shares, and Piper Sandler has a $500 target. However, the stock also has bears other than JP Morgan. Bernstein, for example, has maintained a $120 price target on Tesla shares since October.
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