Tesla stocks crash: Should you sell or hold for future profits?

Tesla share price fell nearly 8 on Monday to struggle at $292.91. Elon Musk-headed company's stock has lost 35 per cent since hitting a record high in December and is the worst performing among the 'Magnificent Seven' this year. The EV maker is set to lose more than $80 billion in market valuation if current losses hold, while traders are set to make about $1.4 billion in paper profits from their short positions in Tesla shares on Monday. Now traders and investors fear that Musk’s companies, which receive significant subsidies from the federal government, could suffer further as the feud between the world's wealthiest person and US President Donald Trump reignited over the weekend.

Tesla Share Price

Tesla sales plunged 13 per cent in the first quarter compared with the same period last year. Since hitting an all-time high of $479.76 on December 17, Tesla shares have lost about 40 per cent of their value. Tesla shares are down about $26 each since Thursday's close, to $289.75.


The prediction range spans widely from lows of ~$120–$190 (Goldman Sachs at $190; HSBC at $120; UBS cut to $225) to highs of $400–$500+ (Morgan Stanley at $400–410; Benchmark at $475; Piper Sandler & Wedbush around $500–515).

Tesla Stocks - Should You Hold?

Tesla remains a high-conviction, high-volatility story. If you believe in its ability to scale FSD, robotaxis, and Dojo, the upside from the current ~$293 is substantial. But execution risks and macro pressures could push it well below consensus.

Investor needs to track upcoming Q2 delivery data and robotaxi rollout progress and monitor regulatory as well as political developments—especially EV subsidies or trade policy shifts. One must Stay informed on analyst revisions—ESG or tech analysts may shift targets quickly.

Elon Musk vs Donald Trump

Tesla Stocks plunged after CEO Elon Musk's plans to launch a new U.S. political party reignited concerns about his commitment to the company's future as it struggles with declining sales. Musk unveiled the 'America Party' over the weekend after a public dispute with President Trump on the tax-cut and spending bill. Trump, who was once an ally of Musk, called the latest idea "ridiculous".

Trump had threatened to cut off the billions of dollars in subsidies that Musk's companies receive from the federal government after their feud erupted into an all-out social media brawl in early June. Musk's political move comes days after Tesla posted a second straight drop in quarterly deliveries.

FAQs

Q1. Who is CEO of Tesla?
A1. The CEO of Tesla is Elon Musk.

Q2. What is President of USA?
A2. President of USA is Donald Trump.