Tesla Stock: Major Recall Triggers Sharp Share Price Drop

Tesla's stock faced significant pressure on the Nasdaq 100, declining nearly 5% amid news of a substantial recall affecting approximately 380,000 vehicles in the United States. The recall, prompted by power steering system issues that particularly impact low-speed maneuverability, has intensified the downward trajectory of Tesla shares that began in mid-December. The trading session opened at $353.19 and continued its descent to $350.30, with notably high trading volume reaching 1.6 million shares, reflecting heightened market concern over the technical complications.

Market Outlook and Strategic Possibilities

Despite current market challenges, analysts maintain a cautiously optimistic stance, projecting a target price of $277.71 per share. Adding to market dynamics are speculations about Tesla's potential involvement with Nissan, as high-ranking Japanese figures advocate for a strategic partnership. Such a collaboration could grant Tesla access to Nissan's underutilized U.S. manufacturing facilities, which currently operate at half their million-vehicle capacity. While Nissan's stock surged 10% in Tokyo following these rumors, Tesla investors have responded with measured caution to the possibility of such a strategic alliance.