Tesla stock is gaining ground following a recent report suggesting that the company could be on track to receive a $400 million contract through the U.S. State Department. However, subsequent developments are casting doubt on whether the deal will actually go through. The stock is also getting a boost from bullish analyst coverage.

Shares of EV maker Tesla (TSLA) have struggled since hitting their record high of $488.54 on December 18, 2024, by plummeting to around $330 at

Tesla shares can’t stop sliding. The stock sank 6.3% to $328.50 Tuesday and was the day’s worst performer on the Nasdaq 100. It was Tesla’s lowest close since Nov. 15 and its fifth consecutive day of falling.

The Dow and S&P 500 are falling, while the Nasdaq rises Wednesday as the stock market digests the CPI inflation report.

Tesla’s stock continues to pullback, as the souring of public opinion toward CEO Elon Musk fuels worries of lower sales.

Tesla 's ( TSLA 2.44%) sales are falling worldwide as the company tries to pivot to new categories. *Stock prices used were the afternoon prices of Feb. 10, 2025. The video was published on Feb. 12, 2025.