Tesla Stock Extends Losing Streak Ahead of Election Day
Tesla stock is headed toward its sixth straight loss Monday and Wall Street is staying on the sidelines. Here's why.
You are now subscribed
Your newsletter sign-up was successful
Want to add more newsletters?
Delivered daily
Kiplinger Today
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more delivered daily. Smart money moves start here.
Sent five days a week
Kiplinger A Step Ahead
Get practical help to make better financial decisions in your everyday life, from spending to savings on top deals.
Delivered daily
Kiplinger Closing Bell
Get today's biggest financial and investing headlines delivered to your inbox every day the U.S. stock market is open.
Sent twice a week
Kiplinger Adviser Intel
Financial pros across the country share best practices and fresh tactics to preserve and grow your wealth.
Delivered weekly
Kiplinger Tax Tips
Trim your federal and state tax bills with practical tax-planning and tax-cutting strategies.
Sent twice a week
Kiplinger Retirement Tips
Your twice-a-week guide to planning and enjoying a financially secure and richly rewarding retirement
Sent bimonthly.
Kiplinger Adviser Angle
Insights for advisers, wealth managers and other financial professionals.
Sent twice a week
Kiplinger Investing Weekly
Your twice-a-week roundup of promising stocks, funds, companies and industries you should consider, ones you should avoid, and why.
Sent weekly for six weeks
Kiplinger Invest for Retirement
Your step-by-step six-part series on how to invest for retirement, from devising a successful strategy to exactly which investments to choose.
Tesla (TSLA) stock rallied hard on the price charts following the electric vehicle (EV) maker's blowout earnings last month, rising more than 25% from October 23 to October 25. However, shares have been in a downtrend ever since – currently headed toward a six-day losing streak – which could be due to CEO Elon Musk actively participating in the Republican presidential campaign.
Musk has been campaigning for former President Donald Trump and formed the America PAC to support values that the two agree on, including secure borders, sensible spending and free speech. Trump has stated that if he is re-elected, he will create a government efficiency commission dedicated to sensible spending and it will be led by Musk.
However, while Musk and Trump align on many major issues, there are question marks surrounding how a Trump presidency would impact Tesla.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
"We believe a Trump presidency would be an overall negative for the EV industry as likely the EV rebates and tax incentives get pulled," says Wedbush Daniel Ives. But for Tesla, Ives sees a Trump win as a potential positive with some caveats.
"Tesla has the scale and scope that is unmatched in the EV industry, and this dynamic could give Musk and Tesla a clear competitive advantage in a non-EV subsidy environment, coupled with likely higher China tariffs that would continue to push away cheaper Chinese EV players from flooding the U.S. market over the coming years," Ives notes.
In the case of a Harris win, Ives expects the EV tax credits will remain in place "and ultimately increased in 2025 as the goal to get more U.S. consumers towards EVs would be a laser focus in a Harris administration."
Wedbush has an Outperform (Buy) rating and $300 price target on TSLA stock.
Is Tesla stock a buy, sell or hold?
Tesla's latest losing streak has the shares trading in negative territory for the year to date and Wall Street is staying on the sidelines when it comes to the Magnificent 7 stock.
According to S&P Global Market Intelligence, the average analyst target price for TSLA stock is $222.68, representing a discount of more than 9% to current levels. Meanwhile, the consensus recommendation is a Hold.
Financial services firm CFRA Research has a Hold rating on Tesla, but raised its price target to $265 from $225 following its third-quarter earnings results.
"We raise our target in the aftermath of the company's Q3 earnings release and conference call, recognizing the willingness of investors to pay higher multiples for TSLA shares due to increased excitement related to the company's longer-term growth prospects," said CFRA Research analyst Garrett Nelson in an October 28 note.
The consumer discretionary stock's valuation has always been a pain point for analysts, Nelson says, with "bears arguing that the stock has been unjustifiably overvalued relative to auto industry peers for many years. We have long argued that TSLA should instead be valued as a 21st century, sustainable transportation, energy, and technology company and therefore valuation is more arbitrary."
Related Content
-
Dow Adds 1,206 Points to Top 50,000: Stock Market TodayThe S&P 500 and Nasdaq also had strong finishes to a volatile week, with beaten-down tech stocks outperforming.
-
Ask the Tax Editor: Federal Income Tax DeductionsAsk the Editor In this week's Ask the Editor Q&A, Joy Taylor answers questions on federal income tax deductions
-
States With No-Fault Car Insurance Laws (and How No-Fault Car Insurance Works)A breakdown of the confusing rules around no-fault car insurance in every state where it exists.
-
Dow Adds 1,206 Points to Top 50,000: Stock Market Today
The S&P 500 and Nasdaq also had strong finishes to a volatile week, with beaten-down tech stocks outperforming.
-
The Best Precious Metals ETFs to Buy in 2026Precious metals ETFs provide a hedge against monetary debasement and exposure to industrial-related tailwinds from emerging markets.
-
For the 2% Club, the Guardrails Approach and the 4% Rule Do Not Work: Here's What Works InsteadFor retirees with a pension, traditional withdrawal rules could be too restrictive. You need a tailored income plan that is much more flexible and realistic.
-
Retiring Next Year? Now Is the Time to Start Designing What Your Retirement Will Look LikeThis is when you should be shifting your focus from growing your portfolio to designing an income and tax strategy that aligns your resources with your purpose.
-
I'm a Financial Planner: This Layered Approach for Your Retirement Money Can Help Lower Your StressTo be confident about retirement, consider building a safety net by dividing assets into distinct layers and establishing a regular review process. Here's how.
-
Stocks Sink With Alphabet, Bitcoin: Stock Market TodayA dismal round of jobs data did little to lift sentiment on Thursday.
-
The 4 Estate Planning Documents Every High-Net-Worth Family Needs (Not Just a Will)The key to successful estate planning for HNW families isn't just drafting these four documents, but ensuring they're current and immediately accessible.
-
Love and Legacy: What Couples Rarely Talk About (But Should)Couples who talk openly about finances, including estate planning, are more likely to head into retirement joyfully. How can you get the conversation going?
