From Nasdaq: 2025-02-15 04:27:00

Tesla stock reached a new high post-Trump’s win, as investors anticipate favorable regulations for faster rollout of full-self-driving (FSD) software. However, declining EV sales pose a challenge. Musk’s growth projections weren’t met in 2024, with a 1% decline in deliveries. Competition and softening demand for EVs add to Tesla’s woes.

With Tesla’s EV sales shrinking, Musk’s projection of a 30% growth in 2025 sales faces early setbacks. Sales plummeted in various markets, with Tesla losing market share in Germany amid rising EV sales. Increased competition, like China’s BYD, poses a threat with affordable models entering the market, intensifying Tesla’s challenges.

Tesla’s ambitious plans for FSD, including the Cybercab robotaxi, aim to generate substantial revenue. Analysts foresee a trillion-dollar opportunity in autonomous ride-hailing, projecting significant revenue growth. The Optimus humanoid robot, expected to revolutionize various industries, has the potential to generate $10 trillion in sales and outnumber humans by 2040.

Despite Tesla’s high valuation, reflected in a P/E ratio of 161, the stock faces a significant downside risk. With a decline of 31% from its peak, further drops of over 50% are predicted due to overvaluation and weak earnings. The stock’s premium valuation, coupled with declining EV sales, raises concerns for investors considering a potential buying opportunity in the long term.



Read more at Nasdaq: Prediction: Tesla Stock Could Plunge by Another 50% (or More)