AUSTIN — Tesla (NASDAQ: TSLA) shares roared back Wednesday, March 12, 2025, climbing nearly 8% in early trading—adding to Tuesday’s 3.8% gain—after Monday’s brutal 15.4% drop, the stock’s worst since September 2020. That crash, wiping out $130 billion in market value, capped a seven-week losing streak—Tesla’s longest as a public company—and fueled a 40%+ slide since Donald Trump’s January 20 inauguration. Yet, with Trump vowing Tuesday to buy a Tesla “in support” of Elon Musk, the bulls are stirring. Is this a turning point, or a fleeting bounce?
Monday’s Meltdown: Tariffs and Recession Jitters
Monday’s bloodbath saw Tesla lead a $750 billion tech megacap rout—Nasdaq’s worst day since 2022—as recession fears and Trump’s tariff threats (25% Canada/Mexico, 10% China) spooked markets. With 15% of Model Y parts from Mexico and nearly half its cars made in Shanghai (per Barron’s), Tesla’s supply chain’s in the crosshairs. “Tariffs could hike costs 20%—EV margins are toast,” an X post warned. Add slumping deliveries—down 49% in China (Reuters) and 50% in Europe (PCA)—and bears smell blood. Shares hit $222.15 Monday, down 53% from December’s $479 peak.
Trump’s Boost and Musk’s Multiverse
Tuesday’s tide turned when Trump, at a White House presser flanked by five Teslas, called Musk a “patriot” and pledged to buy one—lifting shares 3.8% to $230.63. Wednesday’s 8% pop (to ~$249) suggests faith in Musk’s Trump ties, forged with $270 million in campaign cash and his Department of Government Efficiency (DOGE) gig. But it’s a double-edged sword: 85% of investors in a recent survey (Morning Consult) say politics—amped by Musk’s X rants—are torching the brand. Protests hit Tesla stores Saturday; “I bought it before Elon went nuts” bumper stickers proliferate.
Bulls vs. Bears: EV Dreams on the Line
Bulls cling to Musk’s promises—an affordable EV and robotaxi rollout by late 2025—despite SpaceX’s test explosions and X’s Monday outages. “Long-term, Tesla’s fine,” Musk posted Monday, echoing X sentiment: “$550 by 2026—Wedbush agrees.” Bears counter with rising EV rivals (BYD’s 40% China share), a 2024 sales dip (1.79M vs. 1.81M prior), and tariff chaos. “Musk’s distracted—DOGE’s a sideshow,” an X analyst jabbed. Wall Street’s split: UBS cut its target to $225; Wedbush holds at $550.
What’s Next for Tesla in 2025?
At $249, Tesla’s $780B market cap trails its $1.5T peak. Wednesday’s JOLTS data (down 8% to 7.1M openings, per Reuters) and Thursday’s PPI could deepen recession vibes—or ease them, lifting risk assets. Trump’s Tesla buy might juice sentiment, but tariffs loom—Canada’s $20B retaliation hit Tuesday. With Intel’s 12% CEO pop and iRobot’s 30% crash, tech’s volatile. Can Musk refocus, or will politics and trade wars sink the rebound? Thursday’s close and Musk’s next X move hold clues—buckle up!
