Following an extraordinary 2023 and 2024, when Tesla (NASDAQ: TSLA) shares rose 102% and 63%, respectively, the stock is facing different sentiment in 2025. As of this writing, shares are down more than 18% year to date.

On February 20, Tesla’s 50-day moving average shifted into a bearish trend as the telltale trendline shifted into a declining pattern. The last time Tesla’s 50-day followed a similar trend was January 24, 2024. That shift in the stock’s momentum preceded a 22% decline in Tesla shares over two-month period.

The buy the dip crowd failed to make an appearance Tuesday and the tech stocks they’ve been pumping up suffered the damage.

Super Micro Computer surges after the server maker files its delayed 10-K, Nvidia’s closely watched extends losses, and GM boosts its dividend and unveils a new $6 billion stock buyback plan.

U.S. stocks increased on Wednesday as investors awaited Nvidia’s highly anticipated earnings report. New home sales data released in the morning showed sales of new single-family homes in January 2025 were recorded at a seasonally adjusted annual rate of 657,

The electric-car maker’s stock has had a bumpy ride since the victory of President Trump, who has given Tesla’s chief, Elon Musk, a role in Washington.

The drop in Tesla shares took the company's valuation back below $1trn for the first time since November 2024. Tesla has been facing stiff competition in the European market from Chinese and other manufacturers.

Tesla Inc.’s sales plunged 45% last month across Europe, where rival carmakers saw a surge in electric-vehicle demand.