Tesla is one of those companies about which everyone seems to have an opinion. For some, it is the future of the car. Others think it’s overhyped. Either way, it’s all over the map.

Right now, that’s been particularly true, since Tesla’s stock price has been beat up a bit. Investors are carefully eyeing it to decide if it’s the time to buy, hold or sell.

If you ever wonder what’s happening with the price of Tesla’s shares in mid-2025, here’s a look at the situation.

What’s the Price Now?

At the moment, Tesla’s share price is sitting around $294 (about £235).

That’s after a sharp drop of more than 6% in a single day.

It’s not the first time Tesla’s price has seen big swings. This stock is famous for them. But this latest fall has rattled a lot of investors.

Why Has It Dropped?

There’s no single reason. It’s more a blend of things that all come together at once.

The single biggest factor? Elon Musk himself.

He recently said he would create a new US political party—the so-called “America Party.” Investors didn’t take this news well. They are concerned he may get distracted from running Tesla.

Some even believe it stands to tarnish Tesla’s image if Musk’s politics annoy prospective customers.

Then there’s the wider picture. Tesla’s sales numbers have slipped. In reality, recent delivery numbers were 13–14% below this time last year.

That’s an increasingly alarming trend given the competition in the electric car space is red hot. Competitors in China like BYD are also challenging Tesla with more affordable alternatives. Traditional carmakers, too, are fielding a steady stream of new electric options.

All of this has had people asking: has Tesla lost its mojo?

Investors React Badly to Surprises

One thing markets hate is surprise.

Musk’s political plans were a surprise.

Falling delivery numbers were also worse than expected.

When these surprises hit, investors often panic a bit. Many choose to sell, pushing the price down quickly.

To give you an idea of the scale, Tesla lost around $79 billion in market value in just a few days. That’s the kind of drop that makes headlines around the world.

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Not the First Big Drop

Of course, if you’ve followed Tesla for a while, you know this isn’t the first time the share price has dropped dramatically.

It’s famous for its volatility.

Just last December, Tesla shares were trading around $479. That means the price has fallen over 35% since then.

Long-term holders have seen plenty of these dips before, but it doesn’t make them any less stressful.

Short Sellers Make a Profit

Not everyone loses when the price drops.

Short sellers—people who bet the stock will fall—have reportedly made around $1.4 billion from this recent slump.

They borrow shares, sell them immediately, and then buy them back at a lower price. It’s risky, but it can pay off when a stock tanks like Tesla has recently.

What Are Analysts Saying?

Opinions are split.

Some say Tesla remains a strong long-term bet. After all, it still leads the electric car market in many places. It’s developing new models and working on self-driving technology.

Others are more cautious.

They point out the falling deliveries, the rising competition, and Musk’s tendency to get distracted. His public feud with Donald Trump hasn’t helped, especially as the US government talks about future EV subsidies.

Dan Ives, a well-known tech analyst, says Musk’s political plans are a real worry. He reckons it could push investors and even customers away.

What’s Next for Tesla?

It’s hard to say for sure. That’s the honest truth.

Tesla is planning new, cheaper models (sometimes called the Model 2 or Model Q) that could boost sales. It’s also talked up its robotaxi plans, which—if they work—could be a huge money-maker.

But these are promises, not guarantees.

Meanwhile, rivals keep improving. Chinese brands are getting better and cheaper. European carmakers are investing billions in electric cars.

Tesla still has a loyal fanbase, but it’s no longer the only game in town.

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What Should Regular Investors Do?

If you own Tesla stock or you’re thinking about buying it, here are a few things to keep in mind:

• Think Long-Term: Tesla’s always been a bumpy ride. If you believe in the company’s vision, you might choose to sit tight.
• Watch the News: New delivery figures, political drama, and government subsidies—any of these can move the price quickly.
• Be Honest About Risk: Tesla isn’t a safe, steady stock. It can go up a lot but also fall hard. Make sure you’re comfortable with that.
• Consider Diversifying: Don’t put all your money in one stock, no matter how exciting it seems.

Final Thoughts

The stock of Tesla is in a rut. It has plummeted, and investors are concerned about Elon’s focus, slipping sales and brutal competition.

But that wouldn’t be anything new for Tesla. But this is a company that’s always been controversial, always volatile and always in the spotlight.

If you’re thinking of investing, don’t get caught up in hype, either good or bad. Which is to say: Look at the numbers, consider what you think the market will bear in electric car sales over the next five to 10 years, and be certain any stake in Tesla is just a piece of your total plan.

Because love him or hate him, Elon Musk will continue to dominate the news. And Tesla’s share price will keep moving right along with them.