Tesla Stock (TSLA) is now sitting around 45% from its all-time high of 488.54, reached back in December 2024. Despite its fall from that number, historic patterns still have investors and experts bullish on the EV maker’s stock future. In the past week, shares are down 8%, despite receiving a temporary dip at the beginning of last week. With the gap from its ATH increasing, why are experts still hopeful?
One of the biggest arguments for Tesla (TSLA) outgaining rival auto-makers and stocks is the recently-announced US tariffs. The EV automaker was expected to be affected by the tariffs slightly, but it is actually reaping the benefit of rival manufacturers being hit harder. Trump’s 25% tariffs are expected to disrupt the global automotive industry and raise the cost of vehicles in the United States. Shares of Ford, General Motors, and Chrysler-parent Stellantis have fallen much steeper than TSLA, giving the latter hope.
History Favors Tesla (TSLA) Rally
Further, viewing previous similar price patterns for Tesla stock reveals a potential rise is in store. Tesla stock has declined at least 50% from a record four times since the company went public in June 2010. Thus, investors can review the first three incidents to hypothesize how the current one might play out.
- In September 2017, Tesla shares peaked at around $26 before dropping 54% by June 2019. Model 3 manufacturing problems, Model Y production delays, and disappointing financial results drove the decline. Shares reached a new high in December 2019, shortly after the Cybertruck unveiling. The stock returned 394% during the year following its low in June 2019.
- In February 2020, Tesla shares peaked at around $61 before falling 60% by March 2020. This drop aligned with a sharp decline in the broader stock market due to COVID-19, leading to factory closures and supply chain disruptions. The stock reached a new high in June 2020, and it returned 804% during the year following its low in March 2020.
- Lastly, in November 2021, Tesla shares peaked at around $410 before falling 73% by December 2022. Supply chain problems and weak demand amid rising interest rates caused the decline, as did the perception that CEO Elon Musk was distracted after purchasing Twitter. Shares hit a new high in December 2024, shortly after Donald Trump was elected president. The stock returned 140% during the year following its low in December 2022, and it hit a new ATH of $480 in December 2024.
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Looking at these previous dips. investors expect a huge surge once again within the next year. Several things could catalyze this climb, including tariffs favoring Tesla (TSLA) or a boom in sales. History says Tesla will eventually recoup its losses. The stock not only rebounded from the last three declines exceeding 50% but also returned an average of 446% during the 12 months following the bottom of those declines.
Tesla’s stock prediction analysis is showing some pretty promising signs for April 2025, with projections suggesting a peak of $327.17. This represents a 13.55% gain from current prices, which is a solid starting point for its path back to $480.
