Tesla stock(NASDAQ: TSLA) has been on a volatile ride in recent months, experiencingsignificant declines driven by multiple factors, from declining vehicle salesto CEO Elon Musk’s controversies. Investors are left wondering, "Why isTesla stock down today?" as market fluctuations continue.Thisarticle analyze Tesla stock’s performance, financial metrics, and competitivelandscape. We will also explore Tesla stock predictions for 2025 and 2030 tounderstand its future trajectory.Tesla Stock Price Today:Analyzing Recent PerformanceAs of today(Thursday), February 27, 2025, Tesla stock is trading at $290.80, reflecting adecrease of $11.96 (3.95%) from the previous close. This price drop is part ofa broader downward trend influenced by macroeconomic conditions, slowingdemand, and increasing competition in the EV market.Thedeclines continue for the fifth consecutive session, with the price droppingbelow the psychological level of $300 and the long-term 200 EMA moving average,which has indicated a downtrend since August 2024. Bears are currently gainingthe upper hand.TeslaStock Price Movement OverviewTesla stockchart analysis suggests that the stock has been declining steadily over thepast few weeks, breaking key resistance levels and signaling a bearish trend.Investors closely monitoring Tesla stock today are concerned about itsshort-term outlook, leading to increased market volatility.The sharpdeclines have caused the market capitalization of the tech giant to shrink from$1.4 trillion to less than $1 trillion, dropping below this psychologicalthreshold for the first time since November of last year.Tesla Technical AnalysisAfterbreaking the key support level mentioned above, Tesla's stock price opens theway for a decline toward the July highs at $271. This level served assignificant resistance at the end of last year before being breached inNovember when Wall Street surged following Donald Trump's election victory. Thenext support levels can be found at $213 (October lows) and $182 (August 2024lows).What aboutresistance levels? Besides the previously mentioned $300 and the 200 EMA, thenext key resistance is at $326, corresponding to the local lows from Novemberand February. Beyond that, the $359 level, tested in both November andFebruary, serves as another critical resistance point.The latest data collected by Pepperstone also shows that Tesla's stock price has been highly volatile recently. Over the past year, it has been easier to profit from after-hours trading than during regular market hours, with 97% of gains occurring outside standard trading sessions.Key Reasons Why TeslaStock Price Is Dropping1. DecliningTesla Sales in Key MarketsOne of thebiggest factors influencing Tesla stock price is the sharp decline in vehiclesales across multiple regions:Europe: Tesla's sales plummeted by 45% YoYin January 2025, with only 9,945 vehicle registrations compared to 18,161 inJanuary 2024.UnitedStates: Tesla’smarket share in the BEV (Battery Electric Vehicle) segment dropped from 59% to45%, with a 13% YoY decline in sales.China: Sales fell 15% YoY, reflectingweaker demand despite Tesla’s price cuts to attract buyers.Lower saleshave directly impacted Tesla’s revenue and profitability, leading analysts todowngrade their Tesla stock forecasts.2. MacroeconomicFactors and Federal Reserve PoliciesTesla stockprice has also been affected by macroeconomic headwinds, including:Risinginterest rates:Higher borrowing costs discourage consumers from financing Tesla vehicles.Inflationarypressures: Risingproduction costs have squeezed Tesla’s profit margins.Stockmarket sell-offs:Broader economic concerns have led to outflows from high-growth stocks,including Tesla.3. FinancialPerformance and Earnings ConcernsTesla'srecent financial reports have failed to meet Wall Street expectations,contributing to the stock’s downward trajectory. The company’s Q4 2024earnings report showed:Revenuemiss: Teslareported $22.1 billion in revenue, falling short of the estimated $23.5 billion.Lowermargins: Thecompany’s gross margin declined to 17.2%, down from 22.3% in Q4 2023.EPSdecline: Earningsper share (EPS) came in at $0.91, missing the $1.02 consensus estimate.These weakfinancials have led investors to question whether Tesla stock prediction 2025remains bullish or if a prolonged downturn is likely. In Q4 2024, Tesla reported financial results that fell short of analysts' predictions, with automotive revenue decreasing by 8% compared to the previous year and operating income plunging by 23%.4. CompetitivePressure in the EV MarketTesla is nolonger the undisputed leader in the EV market. Increased competition from bothtraditional automakers and emerging EV startups has negatively impacted Tesla’sgrowth prospects:BYD: The Chinese automaker has overtakenTesla as the world’s largest EV manufacturer by sales volume.Rivian& Lucid Motors:Premium EV startups are gaining traction, particularly in the U.S. market.LegacyAutomakers: Ford,GM, and Volkswagen are aggressively expanding their EV portfolios.Ascompetitors introduce new models with competitive pricing and advancedfeatures, Tesla’s pricing power has weakened, contributing to its stock pricedecline.5. ElonMusk’s Controversies and Leadership DistractionsInvestorsentiment toward Tesla stock is also being impacted by Elon Musk’s actionsoutside the company. Concerns include:LongtimeTesla shareholder Ross Gerber claims Musk "doesn't work at Teslaanymore" with his attention divided across SpaceX, xAI, X (formerlyTwitter), and government efficiency efforts.Musk hasbeen spending considerable time in Washington, D.C., managing Trump'sDepartment of Government Efficiency (DOGE).His extremepolitical views and activism have spurred protests across various markets,including demonstrations at Tesla's retail locations and service centers.Musk'sclose association with President Donald Trump has created polarizingperceptions of the Tesla brand, with some consumers boycotting the company.Tesla Stock Prediction2025 and Long-Term OutlookAnalystshave varying perspectives on Tesla's stock forecast for the remainder of 2025:Despite thecurrent downturn, some analysts believe Tesla stock forecast for 2025 remainspromising, citing potential catalysts such as:Newvehicle models:Tesla is expected to launch next-generation vehicles, including an affordableEV model by 2026.FullSelf-Driving (FSD) advancements: Improvements in Tesla’s autonomous driving technology could boostrevenue.Energybusiness growth:Tesla’s expansion in solar energy and battery storage could providediversification beyond EVs.Tesla Stock PricePrediction 2030Lookingfurther ahead, Tesla stock price prediction for 2030 varies widely amonganalysts:While someforecasts remain optimistic, much will depend on Tesla’s ability to maintainits competitive edge in an increasingly crowded EV market.Conclusion: ShouldInvestors Buy Tesla Stock Now?Teslastock’s recent decline has been driven by a combination of factors, includingweaker sales, macroeconomic challenges, increased competition, and investorconcerns over Elon Musk’s leadership. While short-term headwinds persist,Tesla’s long-term potential remains strong, particularly in autonomous drivingand energy solutions.Forinvestors considering Tesla stock today, it’s essential to weigh both risks andopportunities. As Tesla stock price prediction 2025 and 2030 vary, potentialbuyers should focus on Tesla stock forecasts, market trends, and key financialindicators before making investment decisions.Key Takeaways:Tesla stock price is down due to declining sales, competition, and financial performance concerns.Macroeconomic factors, including interest rate hikes, have pressured growth stocks like Tesla.Analysts have mixed Tesla stock predictions for 2025, with long-term potential remaining strong.Investorscan make well-informed decisions in this evolving market landscape by stayinginformed and tracking Tesla stock charts, market updates, and expert insights.Tesla Stock News, FAQWhy is Tesla stock downtoday?Tesla stockis down today due to a combination of factors including slowing vehicle salesacross key markets, concerns about CEO Elon Musk's divided attention,disappointing Q4 2024 financial results, and increasing competition in the EVmarket. The stock has broken below key technical support levels, triggeringadditional selling pressure as investors reassess Tesla's growth prospects andpremium valuation in light of these challenges.How much has Tesla stockprice dropped in 2025?Tesla stockhas plummeted approximately 25% year-to-date in 2025, making it the weakestperformer among the Magnificent 7 tech stocks. On February 25, 2025, Teslashares dropped by more than 8% in a single day, pushing its marketcapitalization below $1 trillion for the first time since November 2024. Thisrepresents a 35% decline from its peak closing price reached in December 2024.What is causing Teslastock price to go down?The primaryfactors causing Tesla stock price to go down include: first annual decline inEV sales after years of growth (down 45% in Europe and 15% in China), shrinkingprofit margins (automotive gross margins fell to mid-teens in Q4 2024), ElonMusk's divided attention across multiple companies and political activities,intensifying competition from traditional automakers and Chinese EVmanufacturers like BYD, and concerns about the company's high valuationrelative to financial performance.What is the Tesla stockprice prediction for 2025?Analystpredictions for Tesla stock in 2025 vary widely. JPMorgan maintains a bearishprice target of $135 (60% downside), while ARK Invest has an extremely bullishoutlook with a $3,000 target based on potential autonomous driving success.Morningstar values Tesla at $250, viewing current prices as significantlyovervalued. The analyst consensus ranges from $300-$528, with predictionsheavily dependent on Tesla's ability to return to growth, successfully launchits robotaxi service, and maintain its technological edge.Is Tesla stock a good buyat current prices?WhetherTesla stock is a good buy depends on your investment horizon and risktolerance. Cautious investors might wait for further price corrections givenTesla's still-elevated valuation (forward P/E ratio of 118x), declining sales,and technical indicators suggesting continued downward momentum. However,long-term investors who believe in Tesla's autonomous driving vision, energybusiness growth, and ability to launch more affordable vehicles might view thecurrent price drop as a buying opportunity, especially if they believe Teslacan achieve its guided 25% auto growth in 2025.When will Tesla stockprice recover?Tesla stockprice recovery will likely depend on several key catalysts: successful launchof the robotaxi fleet planned for June 2025 in Austin, return to vehicle salesgrowth as promised by management, introduction of a more affordable vehiclemodel, improvement in automotive gross margins, and potentially a refocusing ofElon Musk's attention on Tesla operations. Technical analysts suggest thatbreaking above the $430 resistance level would be a significant indicator ofrecovery momentum, though the stock faces substantial resistance at its 52-weekhigh of $489.This article was written by Damian Chmiel at www.financemagnates.com.