Tesla Shares Suffer the Longest Consecutive Decline in History, but Is the Turning Point Near?

TradingKey - Musk, who has immersed himself in American politics, is steering Tesla into an unprecedented crisis. Tesla's stock price has fallen for seven consecutive weeks, sales in the European and Chinese markets have plummeted, Wall Street investment banks have lowered their target prices, and even Tesla showrooms and car owners have faced retaliation.

Similar to how President Trump's policies have dampened the enthusiasm for "U.S. Exceptionalism", Musk's leadership as the head of DOGE has brought significant challenges to his primary business, Tesla (TSLA.US).

As of Friday, March 7, Tesla's stock price has declined for seven consecutive weeks, marking its longest losing streak since its listing 15 years ago. Tesla's latest closing price is $262.67, and its total market value has shrunk by more than $800 billion compared to its peak of $480 on December 17, 2024. So far in 2025, the stock has fallen by 34.96%.

While advocating for government layoffs and spending cuts, Musk has been widely "retaliated against" by investors. In February,Tesla's sales in China decreased by 49% year over year, while sales in Germany plummeted by 76%. In other european countries including Sweden, Norway, and Denmark, sales dropped by more than 40%. Meanwhile, sales in the United States have fallen for four consecutive months.

Analysts from Baird noted that the relationship between Musk and the Trump administration has brought uncertainty to the demand side. 

Data shows that analysts expect Tesla's adjusted earnings per share for the first quarter to be $0.52, marking a 45% decline compared to the same period last year. Revenue also declined by 21%.

Last week, both Bank of America and Goldman Sachs lowered their target prices for Tesla, citing declining sales in key markets.

Additionally, Tesla has been hit by a series of destructive incidents. Recently, seven Tesla charging stations outside Boston were deliberately set on fire, and a Tesla showroom in Oregon was targeted in a shooting.

Dan Ives, a longtime bullish analyst from Wedbush, said that negative sentiment in the global market towards Musk—whether due to his involvement with DOGE or his alignment with the Trump administration—is spreading. He described this as a critical test for Tesla bulls.

However, the recent debut of Tesla's self-driving taxi Cybercab, may give the market hope that Musk is refocusing on his core business.

March 9, the Cybercab was seen driving autonomously near Texas Gigafactory. Musk had previously stated that he is confident about launching the self-driving taxi service in Austin, Texas, by June this year.

Analysts from Wedbush believe that tesla's true value lies in autonomous driving rather than vehicle sales. They predict that Tesla will dominate the autonomous driving sector, and other automakers may adopt its Full Self-Driving (FSD) technology in the coming years.