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Tesla Stock: Bear Market Could Sink TSLA to $100
28 Jul
Summary
- Nasdaq-100 nears bear market, potentially dropping Tesla stock to $100.
- Tesla's EV sales are growing, but profit margins are declining due to price cuts.
- Alphabet's Waymo leads in autonomous ride-hailing, outpacing Tesla's Cybercab.
The Nasdaq-100 index is on the verge of a bear market, a decline of 20% from its recent high. This could significantly impact Tesla's stock price, potentially driving it down to $100, a level not seen since the 2022-2023 bear market. Tesla's electric vehicle sales showed improvement in Q2 2026, with deliveries up 25% year-over-year. However, this growth came at the cost of lower average selling prices and an 18% drop in adjusted earnings per share.
Tesla faces increasing competition from Chinese EV manufacturers offering lower prices and comparable features in key markets. While CEO Elon Musk believes the company's Full Self-Driving (FSD) software could be a competitive advantage, its autonomous taxi program has completed significantly fewer driverless miles than Alphabet's Waymo. Waymo is already operating paid autonomous ride-hailing services in multiple cities and plans further expansion.
Tesla's stock currently trades at a high price-to-earnings ratio compared to the Nasdaq-100, increasing its vulnerability during market downturns. Although future growth prospects, such as the Cybercab robotaxi and Optimus humanoid robot, are cited as reasons for a higher valuation, the current market jitters and Tesla's high valuation present risks for investors. The company's P/E ratio has historically bottomed much lower during previous bear markets.
