Key Highlights:
Tesla Inc. (NASDAQ: TSLA) took a steep hit in today’s trading session, with the Tesla stock price falling $25.64 (-9.59%) to $241.64 as of 2:21 PM ET on April 4. The sharp correction follows lower-than-expected Q1 vehicle delivery data and intensifies growing concerns about Tesla’s growth trajectory, valuation, and margins.
The decline erased over $80 billion in market capitalization, reinforcing investor fears that the EV giant’s best days may be behind it—at least for the short term.
Tesla’s April 4 Trading Snapshot
| Metric | Value |
|---|---|
| Opening Price | $255.38 |
| Day’s High | $261.00 |
| Day’s Low | $236.00 |
| Current Price | $241.64 |
| Previous Close | $267.28 |
| Market Cap | $75.76K Cr |
| P/E Ratio | 118.55 |
| Dividend Yield | N/A |
| 52-week High/Low | $488.54 / $138.80 |
What Triggered Tesla’s Stock Price Crash?
1. Disappointing Q1 Deliveries
- Tesla reported 386,810 vehicle deliveries for Q1, missing consensus estimates by a wide margin.
- This marks the first year-over-year drop in deliveries since the pandemic, sparking panic among investors.
2. EV Demand Slowdown
- Global EV demand has softened, especially in China and Europe—two major markets for Tesla.
- Competitors like BYD, Ford, and Hyundai are gaining ground rapidly in the mid and budget EV segments.
3. Valuation Concerns
- Tesla trades at a P/E of 118.55, making it one of the most expensive large-cap stocks on the market.
- Investors are now questioning whether Tesla can maintain its growth rates to justify the premium valuation.
Analyst Reactions: Mixed to Negative
“The delivery miss is significant. This is the kind of growth stumble that makes high-multiple stocks like Tesla very vulnerable,”
— Dan Ives, Wedbush
“Tesla’s innovation edge is real, but Wall Street hates surprises—especially negative ones. The sentiment could remain shaky into earnings,”
— Gene Munster, Deepwater Asset Management
Tesla vs. Other Big Tech and Auto Stocks Today
| Company | % Drop | Key Reason |
|---|---|---|
| Tesla (TSLA) | -9.59% | Weak deliveries, EV margin fears |
| NVIDIA | -6.75% | AI rally fatigue |
| Intel | -10.81% | Margin squeeze, weak guidance |
| Ford | -2.68% | EV transition delays |
Tesla is among the worst-performing S&P 500 components today.
Technical Breakdown: Can $240 Hold?
- Key Support: $240 (psychological), then $236 (today’s low)
- Resistance: $255 and $267 levels
With the stock breaching its 50-day and 200-day moving averages, momentum traders are likely to stay bearish unless the price recovers above $250 with volume.
What’s Next for Tesla Stock?
Key Risks Ahead:
- Declining global EV incentives
- Rising competition from Chinese EV makers
- Elon Musk’s distractions with X (formerly Twitter) and other ventures
- Potential regulatory pressure in Europe and the US
Potential Catalysts:
- Q1 Earnings Report later this month
- Updates on Cybertruck ramp-up
- Investor Day revelations on FSD (Full Self-Driving) updates and AI initiatives
Tesla will need a major earnings beat or innovation update to restore investor confidence.
Long-Term View: Still a Tech Pioneer, but Road Looks Bumpy
Despite today’s drop, Tesla remains a global leader in EV technology, battery innovation, and autonomous driving. However, today’s correction sends a strong message to the market: growth stories can’t live on hype alone—they need consistent delivery and margin performance.
If you’re a long-term believer in Tesla’s mission, this could be a buying opportunity. But if you’re watching short-term momentum, caution is warranted.
Tesla Stock Price Suffers Its Worst Day of 2025
The Tesla stock price dropping nearly 10% on April 4 marks a critical moment in the EV giant’s 2025 trajectory. Delivery disappointments and valuation pressure combined with tech sector weakness have pushed TSLA into bear territory.
How the company responds in its upcoming earnings call may determine whether this is just a bump—or the start of a longer road downward.
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