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Tesla (NasdaqGS:TSLA) Declines 15% As Musk Denies Interest In Nissan Investment

Tesla (NasdaqGS:TSLA) Declines 15% As Musk Denies Interest In Nissan Investment

Yahoo12-03-2025
Amid recent speculations and statements, Tesla saw a 15% decline in its share price over the last week. This downturn occurred despite the broader market's slight recovery, driven partly by a favorable CPI inflation report and invigorated technology stocks. A high-level Japanese group advocating for Tesla to invest in Nissan, and the subsequent stock market reaction, formed a backdrop of uncertainty following Nissan's merger pullout with Honda. Tesla CEO Elon Musk's denial of interest in such a merger did little to dispel the market's apprehension. Moreover, the announced agreement with WattEV for Tesla Semis highlights ongoing operational ambitions. Against a backdrop of economic concerns, including tariff-induced uncertainties and a potential recession, the company's performance reflected the strains of broader market fluctuations and industry-specific challenges, despite a general upward trend in technology stocks.
Assess the potential risks impacting Tesla's growth trajectory—explore our risk evaluation report.
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Over the past five years, Tesla's total shareholder return has been a very large 703.97%. This remarkable performance reflects its ability to maintain robust earnings growth despite recent challenges. Tesla has become profitable, growing earnings by 43% annually over five years, a key factor underpinning this substantial return. The forecast of Tesla's earnings growing faster than the US market suggests optimism in its long-term growth trajectory. Comparatively, its return over the past year surpassed both the US market and the auto industry, emphasizing its leading position in the sector.
Recent events include legal challenges and mergers and acquisitions (M&A) discussions, affecting investor sentiment and reflecting broader operational dynamics. Discussions concerning potential investments in Nissan have shaped market perceptions, while positive steps like agreements for expanding Tesla's charging network with partners such as General Motors and Subaru indicate strategic moves to enhance EV infrastructure. Earnings announcements revealed mixed results, with a decline in sales and net income in late 2024, influencing short-term market responses.
Is Tesla part of your asset mix? Tap into the analytical power of Simply Wall St's portfolio to get a 360-degree view on how they're shaping up.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include NasdaqGS:TSLA.
Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@simplywallst.com
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