Tesla ,TSLA 2.00%, One of the best performing shares of the last 10 years is close to 2,000% for shareholders and the wider market has been crushing average. The last three years have been more painful. Still up to 40%, Tesla has surpassed 88% cumulative returns of the NASDAQ 100 index over the last three years, killing the market share loss, shrinking margin and recent product flops in electric vehicles (EVS).
This year about 14% below, investors have started doubting Elon Musk and Tesla Stock again. This should be contradictory investors on the occasion of possible purchase due to the most shy from the once winning stock. Will you be the most clever decision to buy Tesla stock that you do to bet against these suspects this year? Let’s dig in numbers and further investigate.
Car volume fall
The wholesale of Tesla’s previous stock performance has come from the development of its EV division. Putting the industry forward, Tesla dominated the sale of new EVs for a few years with its model 3 and Y concepts, the revenue came close to $ 100 billion and operating income for a gain of over $ 10 billion. Now, these figures are all moving in the wrong direction.
In the last quarter, Tesla’s total EV delivery fell 13% to 337,000 years to 337,000, now for several quarters. With a fall in falling prices, Tesla’s automotive sales fell 20%, and the total income from operation fell 66% year in the previous quarter to erase a ton of Tesla’s pre -profitability.
In the last 12 months, Tesla posted $ 7 billion in operational income, which was 50% below the high level of all time. In China, Europe and the United States, with the release of trends in demand, indicate for a continuous decline, delivery estimates and needle to need Tesla prices, while the average used car prices rise, an further indicator of a motor vehicle brand demand. Overall, Tesla’s EV business is in a terrible location in 2025, which is why investors are again doubting the stock.
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Will the robotaxis protect the company?
Tesla is more than only EV sales, though. At least, this is the claim of CEO Elon Musk. Tesla’s stimulating and showman leaders are hypnotizing Tesla’s development in self-driving taxis, meaning that the use of cameras/sensors stationed on Tesla vehicles to drive autonomous cars autonomous for their customers. In the long run, Tesla is expected to create a self-driving taxi network similar to Wemo, although the details are not clear today.
First, Tesla needs to prove that this self-driving technique actually works. Elon Musk originally stated that it will start a Tesla robotaxi in Austin on June 12, but since then it has been amended by 22 June, while it has also been claimed that a Tesla Robotax will travel in all ways from Austin to Los Angeles.
While self-driving cars look exciting, Elon Musk claims that Tesla’s technology is now ready for a decade. In 2017, he said that a Tesla would move from New York City to Los Angeles, and it never happened. Many critics of Tesla’s approach to the autonomous driving point for the use of cameras instead of lidar technology. Cameras are difficult to operate when bad weather.
A robotaxi network has a huge economic promise, not to mention a huge value proposal for society on the way to safe roads and to automate a boring and time -taking work. Sign me up. However, we already have a leading, self-driving company: Vaymo. Taxi network makes 250,000 weekly trips for customers and is growing at a banging pace. This will take a Hercules achievement for Tesla to catch Wemo.
TSLA PE Ratio Data by Ycharts.
Truth about Tesla Stock
Elon can talk to Musk Moon and return about Tesla’s upcoming products that will take the stock to new heights. The reality on the ground is very different. There is a flop and irritation money for the cybercroke company, optimus robots are years away from deployment, and self-driving technology has been a wrong promise around a decade.
Currently, Tesla is an EV manufacturer with a fall of fall, decline in margin, and growth globally. Its stock is not cheaper either. In a trillion-dollar market cap, Tesla has a price-to-Kamai (P/e)) The ratio of 178, which is pricing in huge income increase for the company when its earnings are currently moving in a completely wrong direction. This today offers even more risk to shareholders.
Buying Tesla stock will not be a smart decision for investors this year. Its shares have been overwalled and there is a large negative risk from here.
