Tesla’s (TSLA) stock has faced a steep decline of 33% in the year to date, driven by mounting challenges in the electric vehicle (EV) industry and company-specific headwinds. In Europe, Tesla’s sales dropped by a staggering 49% during the first two months of 2025 compared to the same period in 2024,

Tesla’s stock closed higher Tuesday for the fifth straight day, a remarkable and sustained rally that has recaptured a quarter of the value it lost in the last three months. It may not last.

Shares of Tesla (NASDAQ: TSLA) are falling on Wednesday. The electric vehicle maker's stock lost 3.8% as of 3:30 p.m. ET and was down as much as 5.4% earlier in the day. The steep decline comes as the S&P 500 and Nasdaq Composite indexes lost 0.