Tesla Shares Decline Amid Oil Price Surge and Chip Supply Concerns
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 hours ago
0mins
Should l Buy TSLA?
Source: Benzinga
- Oil Price Pressure: As the U.S.-Israel-Iran conflict continues, crude oil prices surged past $100 a barrel on Monday, and while Tesla vehicles do not rely on gasoline, rising energy costs could strain household budgets and dampen demand for electric vehicles.
- Chip Supply Concerns Resurface: China's commerce ministry is considering export controls on semiconductors from Dutch chipmaker Nexperia, which could disrupt production schedules in the auto industry, particularly affecting power management chips and basic integrated circuits.
- Bearish Technical Indicators: Tesla's stock is currently trading below key moving averages, with the 20-day SMA down 5.3%, the 50-day SMA down 9.2%, and the 100-day SMA down 10.6%, indicating bearish market pressure and caution for investors.
- Stock Performance Review: Despite a 74.93% gain in Tesla's stock over the past 12 months, its current positioning at 61.2% within the 52-week range suggests significant growth but ongoing challenges in maintaining upward momentum.
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Analyst Views on TSLA
Wall Street analysts forecast TSLA stock price to rise
30 Analyst Rating
12 Buy
11 Hold
7 Sell
Hold
Current: 396.730
Low
25.28
Averages
401.93
High
600.00
Current: 396.730
Low
25.28
Averages
401.93
High
600.00
About TSLA
Tesla, Inc. designs, develops, manufactures, sells and leases high-performance fully electric vehicles and energy generation and storage systems, and offers services related to its products. Its segments include automotive, and energy generation and storage. The automotive segment includes the design, development, manufacturing, sales and leasing of high-performance fully electric vehicles, and sales of automotive regulatory credits. It also includes sales of used vehicles, non-warranty maintenance services and collisions, part sales, paid supercharging, insurance services revenue and retail merchandise sales. The energy generation and storage segment include the design, manufacture, installation, sales and leasing of solar energy generation and energy storage products and related services and sales of solar energy systems incentives. Its consumer vehicles include the Model 3, Y, S, X and Cybertruck. Its lithium-ion battery energy storage products include Powerwall and Megapack.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Profitability Progress: Rivian achieved a significant milestone with $144 million in gross profit in 2025, indicating initial progress towards profitability, despite a substantial net loss of $3.6 billion, highlighting the bleak short-term outlook.
- Cost Control Success: In Q4 2025, Rivian improved its automotive cost of goods sold by over $7,200 per vehicle compared to the previous year, driven by cost-cutting and operational enhancements, laying a foundation for future profitability.
See More
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- Competitive Market Pressure: Priced around $50,000, Rivian's R2 has the potential to attract mainstream consumers; however, it faces fierce competition from established brands like Tesla, necessitating effective brand loyalty strategies to secure market share.
- Profitability Milestone: Rivian achieved a gross profit of $144 million in 2025, marking a significant step towards profitability, despite a net loss of $3.6 billion, indicating that the path to sustainable profits remains challenging in the near term.
- Investor Focus: The market performance of the R2 will directly impact Rivian's future; if it fails to meet consumer expectations, it could severely damage the brand, making it crucial for investors to closely monitor the R2's market feedback and sales performance.
See More
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- Overinflated Valuation: Market experts argue that Tesla's stock price, currently at $388.85, is inflated due to Elon Musk's loyal fan base, with shares down over 20% from their 52-week high, indicating excessive optimism among investors regarding future growth.
- Revised Delivery Expectations: Analysts have revised their delivery estimates for Tesla to only 2.8 million vehicles by 2030, significantly lower than the previous target of 20 million, reflecting a diminishing confidence in the company's growth trajectory.
- Increased Competition: With rising competition in the autonomous driving sector and a forward price-to-earnings ratio exceeding 200x, analysts express caution regarding Tesla's future performance, advising investors to remain wary of Musk's overly optimistic statements.
See More
