$TSLA‘s peak was $488.54 on December 18, 2024, and it’s been a brutal slide since, down to around $330.53 as of today, February 24, 2025. That’s a 28% drop in just over two months, and I get why it feels disorienting—especially when the broader markets and crypto are also taking a beating. Let’s break down where the money might be going, based on what’s happening right now.

First, Tesla’s fall isn’t isolated—it’s tied to a mix of its own struggles and a bigger market unwind. The stock soared late last year on hopes of Trump-friendly policies boosting Elon Musk’s ventures, but reality’s kicking in. Sales are tanking—January saw a 63% plunge in France, 60% in Germany, and 38% in Norway, with China deliveries down 11.5% year-over-year. Earnings per share dropped 53% in 2024, and analysts are slashing 2025 forecasts, with folks like JPMorgan’s Ryan Brinkman warning of a “mean reversion” risk. Posts on X echo this—people are pointing to weak Q4 earnings and an even grimmer Q1 outlook as the stock tracks declining fundamentals. Meanwhile, Trump’s tariff threats on steel and aluminum are jacking up Tesla’s costs, and competition from cheap EVs like BYD’s $10,000 Seagull is eating its lunch. The $1.1 trillion valuation looks shaky when Toyota’s making five times the profit on a fraction of that market cap. Now, the broader indices—like the Dow, S&P 500, and Nasdaq—are signaling outflows too. The Dow just had its worst week since October, tumbling alongside tech heavyweights like Nvidia and Tesla on February 21. Crypto’s getting hammered—$508 million flowed out of crypto investment products last week, with Bitcoin ETFs leading the exodus after a $924 million two-week bleed. Investors are jittery over tariffs, inflation sticking around, and the Fed scaling back rate cut expectations—maybe only two quarter-point cuts in 2025. That’s not the soft landing everyone hoped for.

So where’s the money going if it’s not into money markets or Treasury yields? It’s not a clean flood anywhere, which is part of the confusion. The 10-year Treasury yield’s up to 4.47%, reflecting solid U.S. economic data and tariff-driven inflation fears, but it’s not like bonds are soaking up everything—yields are rising, not crashing, so it’s more of a cautious shift than a stampede. Money markets are seeing some love—senior loan funds have pulled in over $1 billion weekly for six weeks—but it’s not massive. The U.S. dollar’s a winner, hitting near a two-year high around 109 on the dollar index, so some cash is likely hiding there as a safe bet. Gold’s ticking up to $2,665 an ounce, but it’s not screaming “panic buying” either. The real story seems to be hesitation. Big money’s not rushing into any one spot—it’s pulling back, waiting out the uncertainty. Some X chatter suggests rotation into defensive sectors like utilities or even solar (thanks to AI demand), but it’s not enough to counter the outflows. Emerging markets might be getting a nibble, but nothing dramatic. Honestly, it feels like capital’s just sitting tight, spooked by Trump’s trade war talk, Fed hawkishness, and a global growth wobble. The TSLA plunge from $488 is a loud symptom of that broader unease—investors are dumping risk, and Tesla’s a poster child for it right now.