Tesla Stock Drops, Then Rebounds—Is Now the Right Time to Buy?

Tesla’s stock has been a rollercoaster this week. On Monday, it tanked by over 15%, wiping out $160 billion in market cap in a single day, making it the worst-performing stock in the S&P 500 this year. Then, on Tuesday, it bounced back.

Why Did Tesla Drop?

1️⃣ Declining Sales – Tesla’s first quarterly delivery decline in 10 years has raised concerns about its growth prospects.

2️⃣ Trade War Uncertainty – US tariffs and counter-tariffs from Canada and China have shaken investor confidence.

3️⃣ Rising Competition – Chinese EV makers like BYD and XPeng are gaining ground, challenging Tesla’s dominance in China and Europe.

Buying the Dip or Avoiding a Falling Knife?

✅ Bullish View – Some investors believe Tesla’s AI and robotics advancements could drive long-term growth, making this dip a buying opportunity.

❌ Bearish View – Others argue that this rebound could just be a "dead cat bounce", with further downside risks ahead. Tesla has now dropped for eight straight weeks, and there’s no clear sign of recovery yet.

Tesla has been one of the most popular US stocks among Singapore investors. Are you still holding, buying more, or looking elsewhere for opportunities? Some traders are even considering inverse ETFs like TSLQ or SQQQ to hedge against further drops.