We recently published a list of Why These 15 Big-Cap Stocks Are Plunging So Far in 2025. In this article, we are going to take a look at where Tesla, Inc. (NASDAQ:TSLA) stands against other big-cap stocks that are plunging so far in 2025.
The market has been reversing its gains earlier in the year, so much so that the S&P 500 is now down 1.5% year-to-date. The past two years have seen the same index post stellar gains back-to-back, and those gains were mostly spearheaded by big-cap stocks.
However, historically speaking, the market delivering a third year of such returns would be unprecedented. Investors believe that 2025 will likely be a year when the market starts to cool off, and recent events have started a trend toward just that.
Big-cap stocks are now leading the way down as tariff and AI-related fears hurt them the most. Many big-cap companies have invested significantly in these tech trends, which investors have now soured on.
Still, it’s a good idea to keep an eye on the big-cap losers year-to-date. Many of them have declined enough to open up buying opportunities.
For this article, I screened the worst-performing big-cap stocks year-to-date.
I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Number of Hedge Fund Holders In Q4 2024: 126
Tesla, Inc. (NASDAQ:TSLA) is an EV company, though Musk is trying to make it look more like an AI/robotics play. That is likely well over a decade away, given Optimus robots are reportedly remote-controlled at showcase events.
The stock is down significantly so far in 2025 as Tesla, Inc. (NASDAQ:TSLA)’s sales in China fell by 49.2% year-over-year in February 2025. This is Tesla’s second-largest market.
Moreover, European EV registrations for Tesla dropped 45% year-over-year in January 2025, even as overall EV registrations in the region rose by 37%.
Tesla, Inc. (NASDAQ:TSLA) has a solid position in the U.S., but that too could be in danger if EV subsidies are pulled back, In that case, Tesla’s margins would decline markedly.
Elon’s involvement in DOGE is also causing Tesla’s customer base to shrink.
The consensus price target of $315.33 implies 15.88% upside.