Tesla (Nasdaq: TSLA) He has recently appeared terribly. Because they reached the peak of USD 479.86 in mid -December, the shares of the electric vehicle manufacturer (EV) today fell by 44% to USD 267.28.

If the investor applied 5000 pounds at the moment, he would only have 2785 pounds today. Disappointing!

Would investing this 5000 pounds be a great opportunity, or will the actions fall apart?

Bubble crack?

Tesla’s shares have long been the winner on the stock exchange. Since it was made public in 2010, it has been 20,781%. The price indicator for profit (P/E) is certainly exorbitant.

I do not think that the valuation itself is the reason why its shares are falling, because the company has always had high valuation multipliers.

The valuation has always been justified by a robust growth, which is now starting to distract. In fact, sales are decreasing. Looking at the company’s latest press release from Tuesday (April 2), he provided only 336 681 vehicles in the first quarter of 2025, which is a 13% decrease compared to 386,610 vehicle supplies in the quarter of the year.

What causes Tesla to grow?

First, the competition hurts. For example, EV sales for a Chinese competitor Hunter It increased by 39% to 416 388 in the first quarter of 2025, which is a clear contrast with the decrease in Tesla.

Secondly, Elon Musk’s involvement in politics could damage the manufacturer’s image. This is observable when Tesla cars and dealers are subjected to protests. In addition, Muska’s European policy criticism was badly received on the continent. The most popular company model, model Y, recorded a decrease in sales in March of the year. In France, it fell by 37%, and then even more in some other countries.

Trump tariffs

So can Tesla overcome these problems and resume growth? Well, the company certainly has many catalysts for future growth. His involvement in autonomous vehicles is an example of this. It is expected that this market will enhance at a complicated annual pace from 37% to 2034. This is an opportunity that Tesla can employ.

However, Trump’s tariffs can mean more problems for the company.

Although it is believed that it is well prepared for tariffs, it still allows some of its parts for production outside the USA. Therefore, the company can still be achieved by additional costs. If he gives them to consumers, he may suffer from reduced demand. If the company absorbs them, it will boast of margin and profitability. This is not helpful for the manufacturer’s manufacturer, because his gross margin has fallen since 2022. Then it was 25.6%, now it was 17.9%.

In addition, the company can be additionally affected by sales abroad, because there are potential mutual tariffs. For example, the EU considers the employ of this measure, adding Tesla to the sale in a block of flats.

For me, Tesla’s supplies are quite exorbitant. Even if it fell by half, his p/e would still be 60. This is too high, especially in the case of problems that the company encounters. The global trade war will only add to this. That is why I saw that the 5000 pound investment dropped by half to $ 2,500 (and potentially lower) in the next 12 months.