Tesla's market cap fell below $1 trillion, but it still reflects investors' assumptions of enormous future growth.

Small caps cooled down after recent hot gains, leading the Russell 2000 down 0.7%. Trading near 2,270, the Russell remains up 1.3% for the week. On the Nasdaq, losers led winners by a 5-to-3 margin. The New York Stock Exchanged chalked up 1,756 stocks down and 1,043 issues up.

Tesla (NASDAQ: TSLA) closed down 8.2% at $305.30 on Thursday, retreating sharply after CEO Elon Musk's cautionary earnings commentary about "rough quarters ahead" amid macroeconomic and electric vehicle (EV) demand uncertainties.

Due to Tesla's innovation and diversification, 24/7 Wall St. sees strong upside potential for the stock by the end of the decade.

Tesla is facing stiffer competition globally from electric vehicle players, especially low-cost competitors from China.

Tesla’s earnings beat, rising margins, and innovation in robotaxis and AI signal long-term upside despite risks and competition. Learn why TSLA stock is a buy.

TeslaTSLA fell sharply during Thursday's stock market, giving up key support levels, as analysts and investors responded to the EV giant's second-quarter earnings and CEO Elon Musk's comments that Tesla "could have a few rough quarters" without U.

Investors held onto hopes that the U.S. and Japan’s trade agreement could lead to a tariff breakthrough with other countries, and pushed the S&P 500 and Nasdaq Composite to fresh record highs.