Tesla’s (TSLA) shares experienced a significant selloff on Monday, March 10, dropping more than 15% in their worst trading day since September 2020. The electric vehicle manufacturer has now faced seven consecutive weeks of losses — its longest losing streak since its 2010 Nasdaq debut.
The decline began shortly after CEO Elon Musk assumed his role in President Donald Trump’s administration as head of the Department of Government Efficiency (DOGE). Since peaking at $488.54 in mid-December, Tesla has lost more than 50% of its value, erasing approximately $800 billion in market capitalization. When asked by Fox Business how he’s managing his businesses while fulfilling his White House duties, Musk admitted he’s doing so “with great difficulty.”
The stock’s plunge comes amid multiple challenges. Uncertainty surrounding Trump’s tariff plans could impact Tesla’s supply chain, as Canada and Mexico are key automotive markets. Additionally, analysts point to brand erosion resulting from Musk’s political activities and controversial social media posts. “When people’s cars are in jeopardy of being keyed or set on fire, even people who support Musk might think twice about buying a Tesla,” Baird analyst Ben Kallo told CNBC.
Musk attempted to reassure investors via social media despite the turmoil, posting, "It will be fine long-term" after Monday's steep decline.
Is Tesla Opening a New Megafactory in Texas?
A report from Electrek revealed that Tesla is expanding its energy business with plans to construct a new Megafactory in Texas, near Houston. The electric vehicle manufacturer will occupy a 1-million-square-foot building at the Empire West industrial park close to Katy, Texas, which was previously leased by the logistics company DB Schenker, responsible for handling parts for Tesla.
Under the agreement, Tesla will receive tax abatements based on $44 million in facility improvements and $150 million in manufacturing equipment. The project also includes a future $31 million distribution facility with $2 million in distribution equipment.
The Megafactory, Tesla’s third such facility following plants in Lathrop, California, and Shanghai, China, will produce Megapack battery storage systems. The EV maker also plans to build an additional 600,000-square-foot distribution facility with some manufacturing capabilities.
Tesla’s Energy Business Is Growing
Tesla continues to expand its energy business beyond electric vehicles, with a significant deployment of energy storage products in 2024. In 2024, it deployed 31.4 GWh of energy storage products, and the business raked in more than $10 billion in sales.
Tesla’s energy generation and storage business accounted for 10.3% of total sales in 2024, up from 6.3% in 2020. In the last 12 months, this business has grown by more than 50% year-over-year.
Tesla’s energy storage portfolio includes Powerwall, designed for residential and small commercial applications, and Megapack, targeted at commercial, industrial, and utility-scale customers. In 2024, Tesla introduced Powerwall 3 to meet increasing demand and ramped up production at its Megafactories in Shanghai and Lathrop, California. The company also continues developing sophisticated software capabilities for remote control and optimizing its energy storage systems.
On the solar side, Tesla provides retrofit solar energy systems along with its innovative Solar Roof, which integrates glass roof tiles with energy generation capabilities. Tesla is focused on enhancing installation efficiency, primarily through partnerships with real estate developers for new home construction.
Is TSLA Stock Undervalued?
Down more than 50% from its all-time highs, Tesla stock has significantly underperformed compared to the broader markets in 2025. Among the 40 analysts covering TSLA stock, 14 recommend a "Strong Buy,” three suggest a "Moderate Buy,” 13 advise to “Hold,” and 10 propose a "Strong Sell.” The average target price for TSLA stock is near $349, indicating potential upside of over 50% from current levels.
