The Tesla company (TSLA) has fallen out of the $1 trillion market cap club as its stock continues a 23% drop. CEO Elon Musk’s recent moves and political activities are having a reverse effect on the stock, as sales fall especially in the UK. The company is underperforming in the majority of Europe in 2025, which has had a significant impact on TSLA’s stock performance. Now, analysts are hoping a reversal is imminent to rescue one of the premium US options on the car manufacturing market.

Figures from the Society of Motor Manufacturers and Traders (SMMT) last month show that Tesla’s sales were down 8% in January. However, next week’s data could show a far bigger fall for February. The company’s market share in Europe dropped to 1% from its previous 1.8%, as it fell behind China’s SAIC Motor, according to Business Insider. Moreover, the competitor saw its market share jump from 1.7% to its current 2.3% in what is shifting momentum. With these factors coming into play, Tesla may continue its recent slump.

Can Tesla Be Rescued From its Recent Stock Slump?

Although there is reason to be pessimistic about the company this year, there is also some upside related to the stock. Indeed, it still has tremendous potential, with the technological developments of the company proving to be a point of focus. If it does hit on some of its more ambitious projects, it could make up for much of its losses and then some. These projects include its Robotaxi and Optimus robots, which Wall Street has previously shown optimism about.

Tesla shares surged in November 2024, in response to Donald Trump’s victory, reaching $463 by mid-December. But since then, it has begun to fall and over the past month, the stock has lost almost a quarter of its value. As a result, the company is now worth less than $1T, after a solid spell above that including a surge in Q4 2024.

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Looking to the stock’s potential to reverse this trend, Wall Street is mixed on Tesla (TSLA). Of 56 analysts surveyed by CNN, only 46% have a buy rating on the stock. Alternatively, 30% have called to hold, with 23% urging investors to sell. Moreover, it holds a median price target of $412, up 33%. However, its high-end projection sits at $1,000 and represents a 225% upside. Meanwhile, its low-end forecasts sit at $135, with a downside of 56%.