Tesla Stock: Wood Buys Dip Despite Global Challenges

Tesla is facing significant market pressure, with shares down 38.10% year-to-date, closing at $249.98 recently. Star investor Cathie Wood remains committed to her "buy the dip" strategy, purchasing Tesla shares worth $16.1 million on March 10. This acquisition brings her ARKK ETF holdings to 2.41 million Tesla shares valued at $596.8 million. The electric vehicle manufacturer's struggles stem from multiple factors, including trade tariffs, economic concerns, and declining sales in China. Despite these challenges, analysts maintain an average price target of $330.90, suggesting a 32% upside potential. Meanwhile, Tesla is progressing with its Indian market entry, having initiated the homologation process for Model Y and Model 3 vehicles-a crucial step toward gaining regulatory approval in this potentially massive market of 1.4 billion people.

Mounting Competitive Pressures

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Sollten Anleger sofort verkaufen? Oder lohnt sich doch der Einstieg bei Tesla?

Competition in the electric vehicle space continues to intensify, threatening Tesla's market dominance. Chinese manufacturer XPeng has boldly claimed its autonomous driving technology "far surpasses" Tesla's Full Self-Driving system. Traditional premium automakers are also stepping up their game, with Mercedes-Benz unveiling a new 800-volt platform capable of delivering ranges up to 800 kilometers. The used car market shows additional signs of Tesla's weakening position, with AutoScout24 data revealing a 19% year-over-year decline in Tesla listings by February 2025, while overall electric vehicle listings increased. Longer inventory periods suggest waning demand as buyers take more time with purchase decisions, indicating Tesla may be losing its exceptional status in the increasingly competitive electric vehicle marketplace.