Tesla shares dropped another 2.4% in premarket trading today, extending last week’s steep 14.8% decline as investor concerns continue mounting. The electric vehicle maker has now erased nearly $90 billion in market value over the past five trading sessions, reflecting growing skepticism about its growth prospects.
The selloff comes amid weakening EV demand signals, price war intensification in China, and delayed product roadmap timelines. Friday’s Cybertruck recall announcement – affecting nearly all units delivered since launch – further damaged sentiment. Analysts have rapidly adjusted targets, with Morgan Stanley cutting its price forecast by 15% citing “materially lower volume growth” expectations.
All eyes now turn to Wednesday’s earnings report, where margins and full-year delivery guidance will determine whether this correction becomes a full-blown capitulation event. With short interest climbing to 3.5% of float (highest since January), the stage is set for either a violent squeeze or accelerated selling depending on results.
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