Is it time to sell your Tesla shares, or to double down?

Update (13 March 2025): We added new information about Tesla's share price.

It's the question on every Tesla shareholders lips — is it time to sell?

After hitting an all time high in December last year, there hasn't been much good news for Tesla investors. On Tuesday, Tesla stock fell 15% to its lowest point since October, marking a 30% plunge in the last month alone. In a surprise turnaround, the share price reversed course jumping 10% over Tuesday and Wednesday.

Of course, Tesla shareholders are no stranger to volatility, thanks in large part to CEO Elon Musk's antics. In 2018, Tesla shares famously fell 20% after Musk's infamous "funding secured" tweet about taking Tesla private.

The question now is whether Tesla is facing a temporary blip, or if it heralds the beginning of a more serious long-term correction.

Quick recap — why was Tesla stock falling?

The biggest drag on Tesla in 2025 has arguably been Elon Musk himself.

His growing involvement in US politics as well as his support of a far-right German political party has sparked backlash and protests globally. His appointment as head of DOGE (Department of Government Efficiency) under US President Donald Trump has only intensified scrutiny.

In February, a grassroots campaign dubbed 'Tesla Takedown' saw anti-Musk rallies spring up across the US and Europe calling for a Tesla boycott.

The dwindling consumer support has seen Tesla's car sales plunge in 2025, declining 45% across Europe in January compared to the year prior, 71% in Australia and 2.3% in the US.

Reports have also emerged of vandalism to Tesla charging stations and vehicles, notably 4 Tesla Cybertrucks were destroyed in Seattle and charging stations near Boston her set alight.

So, is it time to sell?

We asked experts from Australia to weigh in — and the answers were blunt.

Jessica Amir

Jessica Amir, Market Strategist, Moomoo

Moomoo market strategist Jessica Amir sees light at the end of the tunnel for long-term investors, but is cautious about the immediate future.

Following a small Tesla rally overnight Tuesday (+3.8%), Amir warns it could be a classic bear trap.

"I just saw a sell order of 1,145,179 Tesla shares by BNP Paribas... I'm seeing and hearing lots of investors closing shorts," she said.

"It means gains like Tesla’s rally could be short-lived...Tesla could seriously see heavy selling in the weeks to come."

"Strap in for a bumpy next couple of months."

Roger Montgomery, Fund Manager, Montgomery Investment Management

Roger Montgomery

A long-time Tesla sceptic, Montgomery reiterated his bearish outlook, writing:

"Without a serious breakthrough in cost, technology or infrastructure, the BEV [fully electric vehicle] dream is officially on hold."

He previously called Tesla's valuation "unjustified" given its aging product lineup, discounting pressure, and "distracted CEO".

Thomas Rice, Portfolio Manager, Minotaur Capital

With Tesla as Minotaur's biggest short, Rice doesn't believe Tesla's current challenges will go away any time soon.

"Although Tesla has been groundbreakingly innovative, CEO Elon Musk’s incendiary public behavior, such as his controversial comments on Ukraine and his dismissive, even insulting, remarks (like branding critics as “traitors”), has directly contributed to a global sales collapse," said Rice.

He points to growing competition in the robotics space, particularly out of China, as one of the reasons Tesla stock is overvalued.

"We believe this is definitely a "sell" moment."

But, bulls still back it

That said, not everyone's backing away.

Several media outlets have reported Cathie Woods' ARK Invest bought the dip, purchasing over $20 million in Tesla shares on Monday. Morgan Stanley too remains bullish, naming Tesla a top pick for the automobile sector in February.

Optimists are banking on upcoming product refreshes and the rollout of full self-driving and 'robotaxi' programs to breath new life into the stock.

Amir believes once earnings come through — helped by the new Model Y, AI related cost savings and an uptick in Cybertruck sales — we could see the market reassess.

"We’re awaiting US government approval for FSD [full self-driving] and the Cyber Taxi. Once that happens... analysts will likely start upgrading Tesla, which should significantly boost its shares," said Amir.

The bottom line

Tesla’s still one of the most talked-about stocks in the world — but right now, the hype is being overshadowed by controversy. While some investors see the dip as a chance to snap up shares at a discount, others say the risks are starting to outweigh the rewards.

If you’re already holding Tesla stock, now’s the time to reassess whether you still believe in the company’s long-term vision — or whether it’s time to cut your losses and move on. And if you’re thinking about buying in, just remember: this is a stock that moves fast, in both directions.

As always, do your homework and make sure your investment choices actually align with your goals — not just the headlines.

Reuters — Tesla's market value tumbles below $1 trillion as its Europe sales slump, https://www.reuters.com/business/autos-transportation/teslas-market-value-tumbles-below-1-trillion-its-europe-sales-slump-2025-02-25/