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Mohit Oberoi

4 Reasons Tesla Stock Is Crashing in 2025: Should You Buy the Dip?

Tesla Inc. Elon Musk China

Volatility and wild price swings are the name of the game when it comes to Tesla (TSLA). The stock underperformed for much of 2024, but after the November elections in which Tesla was part of the “Trump trade,” shares managed to gain a cool 62% for the year.

Cut to 2025 and Tesla is the worst-performing constituent of the “Magnificent 7,” and among the top losers in the S&P 500 Index ($SPX) based on YTD price action. In this article, we’ll discuss why Tesla stock is crashing, and importantly, whether it would be prudent to buy the dip now.

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