YEREVAN (CoinChapter.com) — Tesla Stock Drops Near 50%, Erasing $800 Billion in Market Value
Tesla (TSLA) stock has dropped near 50% since December, erasing $800 billion in market value. Investors are closely watching the decline, as Tesla struggles with market challenges.
Dogecoin’s Bearish Setup Deepens as Correlation with Tesla Strengthens
Dogecoin’s 52-week correlation with Tesla has reached its highest level, increasing concerns about its price movements. The DOGE/TSLA connection has made the cryptocurrency more vulnerable to Tesla’s stock fluctuations, exposing it to broader market pressures.
The Dogecoin chart reflects a bear flag formation, a pattern traders often view as a sign of continued price weakness. DOGE is trading at $0.16606, showing a 1.94% daily drop, with sellers dominating the market.
The 200-day moving average at $0.22170 remains far above the current price, indicating long-term resistance. Dogecoin has been unable to break back above key levels, and recent price action suggests increased downside risk.
Trading volume has also been notable, with 58.1 million DOGE traded, signaling active market participation. However, buying pressure remains weak, and the Relative Strength Index (RSI) sits at 38.07, nearing oversold territory. The RSI’s downward trend suggests that momentum remains bearish, with limited signs of immediate recovery.
Musk’s Silence on Dogecoin Raises Uncertainty
Elon Musk’s influence on Dogecoin trading and price movements has been significant in the past. However, Musk has not tweeted about DOGE for weeks, leaving the market without speculative catalysts.
In previous months, Musk’s posts have frequently impacted Dogecoin’s price, driving sharp moves based on speculation. The absence of his engagement has reduced volatility but also left traders uncertain about Dogecoin’s short-term direction.
If Tesla’s stock continues to decline, Dogecoin’s high correlation with TSLA could add more pressure to its price action.
Dan Ives Raises Tesla Price Target to $550, Citing Autonomous Growth
Dan Ives of Wedbush Securities has increased his Tesla (TSLA) price target to $550, up from $515, citing advancements in autonomous driving and robotics. He remains confident in Tesla’s long-term potential, despite the stock’s recent decline.
Ives has expressed growing confidence in Tesla’s demand story for 2025, particularly in the autonomous vehicle sector. He believes that Tesla’s expansion in self-driving technology will accelerate, especially with policy support under the Trump administration. His analysis is based on recent discussions in Washington, D.C., where sources indicate that regulatory backing for autonomous vehicles could strengthen.
The analyst also maintains a bullish case of $650 for Tesla’s stock, with the core Chinese market expected to drive strong demand in 2025. According to Ives, China remains a key part of Tesla’s strategy, contributing significantly to revenue growth.
Ives has also projected that Tesla’s market cap could reach $2 trillion by the end of 2025, assuming continued growth in autonomous driving and AI. He sees Tesla’s ability to scale its self-driving fleet as a critical factor in achieving this valuation.
In addition to Tesla’s vehicle business, Ives points out that Optimus, Tesla’s humanoid robot, remains an undervalued asset. His $550 price target does not yet factor in potential gains from Optimus, which he suggests could become a major future catalyst for Tesla’s stock.
Christopher Tsai Voices Similar Concerns About Musk’s Role
Additionally, Christopher Tsai, president of Tsai Capital, has voiced similar sentiments. Tsai hopes that Musk’s role in the Department of Government Efficiency (DOGE) is temporary, allowing him to refocus on Tesla. Tsai’s firm holds a significant stake in Tesla, and he believes that Musk’s political activities have contributed to the company’s recent stock decline.
These investor concerns highlight the potential risks associated with a CEO’s involvement in external political ventures, especially when such activities may distract from the company’s primary business objectives.
The increased Dogecoin correlation with Tesla means that any further Tesla decline could impact Dogecoin trading. The Dogecoin chart pattern suggests price risks remain, with Dogecoin price drop trends aligning with TSLA stock movements.