Tesla Struggles in 2025: Worst Performer Among Major Stocks

Tesla Inc TSLA faces significant challenges in 2025, reflected in its performance data. Among the Magnificent Seven stocks, Tesla has recorded the steepest decline, dropping 25.66% year to date.

No other stock in the MAG 7 experiences this level of decline. For comparison, Microsoft Corp MSFT, Amazon.com Inc AMZN, and Apple Inc AAPL have seen their stocks decrease by only single digits. Similarly, while Nvidia Corp NVDA and Alphabet Inc GOOGL GOOG have also faced declines, Tesla’s drop remains unparalleled.

Tesla’s Distinct Decline Among Elite Stocks

The electric vehicle leader is the only stock among the MAG 7 to fall over 30% in the last month. Over the past five days alone, Tesla’s share price has declined more than 20%, while its peers have shown considerably milder drops.

Conversely, Nvidia, a standout in the AI sector, has surged, yielding a 55% increase over the past year, contrasting sharply with Tesla’s 40% gain.

Read also: Tesla Stock Has Fallen Nearly 40% From December Peak, Wiping Almost $137 Billion From Elon Musk’s Wealth

Valuation Discrepancies for Tesla

Tesla’s forward P/E ratio stands at 95.24, a stark contrast to the other MAG 7 companies. Apple follows with 32.26, while Nvidia, known for its high valuations, holds a more moderate forward P/E at 28.09.

The trailing P/E for Tesla is even more significant at 138.21, indicating that investors are still banking on considerable future growth, despite the recent stock decline.

Revenue Growth & Market Capitalization Challenges

With a forward revenue growth rate of 11.44%, Tesla’s growth potential appears solid; however, it falls short of Nvidia’s explosive 59.26% and Meta’s 16.69%, according to Seeking Alpha data.

Although Tesla maintains a massive market capitalization of $894.84 billion, it notably lags behind its trillion-dollar valuation days and trails behind Apple, Nvidia, and Microsoft, which each surpass $2.9 trillion.

Bearish Trends for TSLA Stock

Chart created using Benzinga Pro

Currently, TSLA Stock, priced at $279.70, trades below its five-day, 20-day, and 50-day exponential moving averages. This indicates strong bearish momentum and ongoing selling pressure. The eight-day simple moving average (SMA) is at $317.32, and the 20-day SMA stands at $345.74—both suggest further downside risk.

Additionally, the 50-day SMA of $389.01 reinforces the negative outlook. However, the 200-day SMA at $278.70 lies just below the current price, possibly providing a long-term support level.

Looking Forward

While Tesla’s fundamentals demonstrate ongoing growth, concerns regarding EV demand and margin pressures are impacting market sentiment—particularly during this period of an AI-driven market. The key technical indicators suggest a continuation of the stock’s weakness. The pressing question remains: is Tesla’s recent plunge an overreaction or a sign of more profound issues?

Ultimately, the decision lies with investors. At this moment, Tesla stands as the only MAG 7 Stock firmly in the negative for 2025.

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