Prediction: Tesla Stock Will Plunge to $100 If the Nasdaq Enters a Bear Market
Tesla stock is vulnerable to significant downside because of its sky-high valuation.
Overview
The Nasdaq-100 index is made up of the 100 most valuable companies listed on the Nasdaq stock exchange, excluding banks and financial institutions. It's often used as a barometer for the performance of the technology sector, which accounts for over half its total value.
The Nasdaq-100 is currently down 8% from its recent peak, and if the decline extends to 20%, it will constitute a technical bear market. The index last traded in bear territory during 2022 and 2023, which sent shares of Tesla (NASDAQ: TSLA) tumbling by 75% to just $100. The electric vehicle (EV) giant is at a disadvantage yet again, after reporting a disappointing set of operating results for the second quarter of 2026.
Details
Tesla stock traded as high as $498 last year, but it has since declined to $310 as I write this. Here's why I predict it will revisit $100 if the Nasdaq-100 enters another bear market.
Source
Originally published at www.fool.com.