No one will argue about that simple fact Tesla (NASDAQ: TSLA) It was an epic investment. Over the past five and ten years, its stocks have risen 396% and 1,640% respectively (as of April 15th). Investors are putting a big bet on the vision of founder and CEO Elon Musk.
However, emotions have shifted to the downside. This top is driven by a 50% drop running through the stomach from record heights to 50% Electric Vehicle (EV) Stock Currently trading for less than $250 per share. Will this be a wise opportunity to buy?
Where would you invest $1,000 now? Our team of analysts revealed what they believe 10 Best Stocks Buy now. Continues “
Investors need to understand that there are valid arguments on both sides of the aisle when it comes to Tesla, which deserves the location of your portfolio.
Tesla is now the 11th most valuable company in the world thanks to its market capitalization of $757 billion. Automotive companies are not generating this kind of talk from the investment community. The credits are more important than anything Tesla focuses on the innovation and disruptions that will create dents in the automotive industry. It works well by combining a well-designed car with its own software.
In the US, Tesla has ordered a dominant market share of 44%. Globally, that figure is still high below 20%. This major position supports brand recognition. Furthermore, by achieving meaningful scale and adoption, Tesla has helped to build strength in other critical areas, such as charging networks and manufacturing capabilities.
The company’s long-term goals are also featured in the upside down. Musk has not eschewed his purpose to launch a global robotaxy service that believes that he will one day see demand for “quasi-infinite.” This will depend on advances in fully autonomous driving (FSD) technology, but investors are still excited about their prospects.
It’s also worth mentioning Tesla’s Energy Generation and Storage Segments. Revenues here more than doubled in the fourth quarter, much faster than the overall business. Over time, this is poised to become an important part of Tesla’s financial performance. Especially as the world moves towards a slow, sustainable future.
Tesla certainly doesn’t have a shortage of arguments in favor of the bull incident. However, there are also notable factors that give the bear enough fuel to fight back.
Tesla’s financial performance is far from the highway lanes. The era of monster growth is over. Auto revenue fell 6% in 2024. Then delivery I defeated two digits The first quarter of 2025.
The margins are under pressure too. Higher interest rates, economic uncertainty and intense competition all play a role here. Tesla’s market share is under attack, and its once-bendy pricing power may be a thing of the past.
Innovation is at the heart of what Tesla is doing. And I envy the fact that businesses are pushing the needle and trying to create a safer, more sustainable world, particularly related to transportation. However, successful Robotaxi services are far from guaranteed.
Tesla’s FSD technology still requires human supervision behind the wheel. When a widely commercialized, unsupervised version appears, everyone guesses. There are still many barriers that need to be cleared. This technology needs to evolve to be safer than today’s human drivers. Regulations need to be cooperative. And perhaps the most difficult nut to crack, humans must feel safe.
But for that credibility, Tesla definitely has the data to continue with Dojo, an artificial intelligence (AI) supercomputer. This makes you one of the leaders of the space.
This leads us to evaluation. Tesla stocks have always been expensive. Currently traded at a Price vs. Revenue 118. The investment community has acquired Musk’s tale about a very bright future for the business.
Unfortunately, today’s company is not nearing justifying its valuation. Tesla may have access to visionary CEOs at the helm, unparalleled technical capabilities and top talent, but investors should avoid buying stocks. This is true even if it trades under $250.
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Neil Patel And his clients have no positions in any of the stocks mentioned. Motley Fools have a job at Tesla and recommend it. To Motley’s fool Disclosure Policy.
Should I buy a Tesla for under $250? Originally published by The Motley Fool
