Tesla shareprice (NASDAQ: TSLA) plummeted 7% in just two trading days, dropping from$323.63 on Friday to $300.71 by Tuesday's close, as investors grappled with arenewed feud between CEO Elon Musk and President Donald Trump. Theelectric vehicle giant now faces a perfect storm of political uncertainty anddisappointing delivery expectations, creating significant headwinds for thestock that had surged 90% in June 2025.The timingcouldn't be worse for Tesla, with the company set to report second-quarterdelivery figures on Wednesday morning. Wall Street analysts anticipatedeliveries of approximately 387,000 vehicles, representing a 13% year-over-yeardecline from the nearly 444,000 deliveries reported in the same period lastyear.Let’s check why Tesla stock is down today and what the newest Tesla share price predictions are for 2025 and beyond.Tesla news: Political FeudTriggers Immediate SelloffThe latestTesla stock decline stems directly from President Trump's explosive TruthSocial post on Monday night, where he suggested the Department of GovernmentEfficiency should investigate Musk's subsidies. "Elonmay get more subsidy than any human being in history, by far, and withoutsubsidies, Elon would probably have to close up shop and head back home toSouth Africa," Trump declared.This publicconfrontation marks the second major political clash between the two figures in2025. The previous feud in early June caused Tesla shares to sink 18% in asingle day before recovering some losses. However, the current dispute appearsmore serious, with Trump explicitly threatening to target Musk's businessempire through government policy changes.Thepresident's comments carry particular weight given Tesla's heavy reliance ongovernment support. The company has reported $11.8 billion in automotiveregulatory credit sales since 2015, with these credits accounting forapproximately 60% of Tesla's net income in Q2 2024. Meanwhile, SpaceX hasreceived over $22 billion in federal contracts since 2008, highlighting thevulnerability of Musk's business empire to political winds.Why Tesla Stock Is DownToday? Delivery Disappointment Looms LargeBeyondpolitical drama, Tesla faces fundamental business challenges that explain whythe stock continues declining. UBS maintains a "sell" rating with atarget price of just $215 per share, projecting Q2 deliveries of approximately366,000 units - an 18% year-over-year decrease.Thedelivery decline reflects broader struggles in Tesla's core automotivebusiness. European sales dropped 45% in January compared to the previous year,while reports indicate declining sales in China and Australia. Even inCalifornia, Tesla's home market, the company's EV market share has fallen below50% for the first time, signaling intensifying competition.Tesla'sautomotive margins have also compressed significantly from post-pandemic highs.The company's Q4 2024 automotive revenue decreased 8% year-over-year to $19.8billion, while operating profit fell 23% to $1.6 billion. These marginpressures stem from aggressive price cuts implemented to maintain market shareamid growing competition.Market Forces BeyondTesla's ControlTesla'sstock decline reflects broader market dynamics that extend beyondcompany-specific factors. The S&P 500 dropped 9.28% in Q2 2025, creatingheadwinds for growth stocks like Tesla. Additionally, ongoing U.S.-China tradetensions and macroeconomic uncertainties continue pressuring the automotivesector.Theproposed "One Big Beautiful Bill" legislation adds another layer ofuncertainty. The spending bill includes provisions that would cut hundreds ofbillions in renewable energy support and phase out EV tax credits, potentiallyreducing Tesla sales by approximately 100,000 vehicles annually by 2035. Thesepolicy changes could significantly impact both Tesla's automotive and energystorage divisions.TSLA Technical AnalysisPoints to New All-Time HighThe stock'stechnical indicators signal potential weakness. After reaching an all-time highof $320 per share in December 2024 following Trump's election victory, Teslahas now declined 38.20% from those peaks. The year-to-date performance shows a22% decline, despite the remarkable June surge that temporarily boostedinvestor confidence.However, basedon my technical analysis, Tesla's stock price is currently testing a criticallevel, the psychological barrier of $300. This level is further reinforced bythe 200-period exponential moving average (EMA). It's also worth noting thatthe price action is unfolding within a broader support zone, defined by the$290 level, which aligns with local highs from March and April of this year.This zone is further strengthened by the 23.6% Fibonacci retracement level,measured from the downward trend that began in late December 2024 and extendedto the April 2025 lows.You may also like: How High Can Tesla Stock Go? “Golden Cross” Bullish Pattern Predicts New Price ATH for Musk’s CompanyThis areamarks the lower boundary of a consolidation range that stretches down to around$280, as last adjusted in early June. The upper boundary of this structurecurrently lies near $317, and it is within this range that Tesla shares are nowmoving—and likely will continue to move in the near term. A breakout above thisrange would require the price to reclaim the 200 EMA, followed by the 50-daymoving average and then challenge the next resistance zone between $320 and$325.Thetechnical outlook also presents a strongly bullish scenario when usingFibonacci extensions based on the previous upward trend. According to thismodel, the target area for Tesla’s stock price lies above $520, whichcorresponds to the 161.8% Fibonacci extension. Reaching this level would implya breakout above the previous all-time high from December, located around $488,and suggest a potential upside of more than 70% from current levels.Tesla Share PricePrediction: Analyst Perspectives Remain DividedDespitecurrent challenges, some analysts maintain optimistic long-term views on Tesla.The company's forward P/E ratio of 62 reflects continued investor confidence inAI-driven growth prospects, particularly around Full Self-Driving technologyand robotaxi services. Tesla's recent launch of limited robotaxi service inAustin, Texas, generated initial enthusiasm before political concernsovershadowed operational progress.However,valuation concerns persist. Tesla trades at a P/E ratio of 120 compared to theindustry average of 15, making the stock vulnerable to any disappointment ingrowth expectations. Wells Fargo previously predicted a 61% stock price dropdue to fundamental business challenges, though Tesla's Q1 2025 earnings helpedstabilize sentiment temporarily.The analystcommunity remains split on Tesla's prospects, with 16 analysts rating it a"Buy," 10 rating it "Hold," and 11 rating it"Sell" out of 37 total coverage. The median Wall Street price targetof $285.97 suggests potential downside from current levels, though severalprominent firms maintain significantly higher targets2025 Tesla Stock PricePredictions by Major AnalystsThe widedivergence in analyst opinions stems from differing views on Tesla's corebusiness transformation. Bulls like Wedbush maintain price targets up to$650, citing the company's AI initiatives and potential regulatoryfast-tracking of robotaxi services under the Trump administration. Conversely,bears point to intensifying competition and margin compression as reasons formore conservative targets.MorganStanley's Adam Jonas recently reiterated his $410 price target with a"Buy" rating, arguing that recent EV tax-credit cuts won'tsignificantly impact Tesla's long-term trajectory. The firm believes Tesla'sstrengths in AI, robotics, and renewable energy infrastructure willdrive future growth despite near-term political headwinds.Looking Ahead: KeyCatalysts and Risks for TeslaTesla'simmediate future hinges on several critical factors. Wednesday's Q2 deliveryreport will provide crucial insight into demand trends and competitivepositioning. The company's Q2 2025 earnings call, scheduled for July 29, willoffer management's perspective on political risks and business fundamentals.Theresolution of the Trump-Musk feud remains paramount for investor confidence. AsWedbush analyst Dan Ives noted, the political tension "puts massivepressure on Tesla shares with fears that Trump will turn from friend to foe andcreate a tough regulatory environment."Tesla'srobotaxi expansion and FSD technology development continue as long-term growthdrivers. The company reported a 25% increase in FSD subscription rates in Q1,suggesting growing consumer acceptance of autonomous driving features. However,regulatory approval for fully autonomous vehicles remains subject to politicalconsiderations.Tesla stockfaces a challenging period as political uncertainty compounds fundamentalbusiness headwinds. The combination of declining deliveries, margin pressure,and potential subsidy cuts creates a perfect storm for continued weakness.While long-term AI and energy opportunities remain compelling, near-termcatalysts appear limited until political tensions resolve and delivery trendsstabilize.Investorsshould monitor Wednesday's delivery announcement closely, as disappointingfigures could accelerate the current decline toward UBS's $215 target price.Conversely, better-than-expected deliveries might provide temporary relief,though structural challenges in the EV market and political risks will likelycontinue weighing on the stock throughout 2025.Tesla News FAQWhy Has Tesla Stock BeenGoing Down?Tesla stockhas declined 7% in just two trading days due to a perfect storm of factors. Theprimary catalyst is the renewed political feud between CEO Elon Musk andPresident Trump, triggered by Trump's Truth Social post threatening to cutMusk's subsidies. Why Is Tesla Losing?Tesla isfacing multiple headwinds that explain its recent struggles. The company'sEuropean sales dropped 45% in January compared to the previous year, while itsCalifornia market share has fallen below 50% for the first time. Tesla'sautomotive revenue decreased 8% year-over-year to $19.8 billion in Q4 2024,with operating profit falling 23% to $1.6 billion. How Much Will Tesla StockBe Worth in 2025?Analystpredictions for Tesla's 2025 stock price vary dramatically, ranging from abearish $249.76 to an extremely bullish $1,109. The median Wall Street pricetarget sits at $285.97, suggesting potential downside from current levels.Major firms show significant divergence: Wedbush maintains targets up to $650,Morgan Stanley projects $410, while UBS forecasts $291.31. The wide spread of$859.24 between the highest and lowest targets reflects fundamental uncertaintyabout Tesla's trajectory amid political turmoil and evolving market dynamics.Is Tesla Stock Predictedto Go Up?Analystopinions remain deeply divided on Tesla's direction. Out of 37 analystscovering the stock, 16 rate it a "Buy," 10 rate it "Hold,"and 11 rate it "Sell". Bulls like Wedbush cite AI initiatives andpotential regulatory fast-tracking of robotaxi services, while bears point tointensifying competition and margin compression. The median price target of$285.97 suggests limited upside potential, though some firms like MorganStanley maintain "Buy" ratings with 32.86% upside potential. What Is the 12 Month StockForecast for Tesla?The12-month outlook for Tesla remains highly uncertain given current political andbusiness challenges. Revenue projections show more consensus, with analystscollectively forecasting a 17.5% increase to $117.2 billion for 2025. However,delivery estimates vary significantly, with Barclays projecting 1.95 millionunits compared to Bloomberg's consensus of 2.08 million. Where Will Tesla Be in 10Years?Tesla'slong-term prospects hinge on successful execution of its AI and energydiversification strategy. The company's energy storage business is projected togrow profits tenfold by 2030, providing crucial revenue diversification beyondautomotive. Tesla reported a 25% increase in FSD subscription rates in Q1,suggesting growing consumer acceptance of autonomous driving features.This article was written by Damian Chmiel at www.financemagnates.com.