From Nasdaq: 2025-04-30 18:37:00

Tesla stock (NASDAQ: TSLA) fell 3.4% on Wednesday amidst a market sell-off triggered by weaker-than-expected Q1 GDP data. The U.S. economy contracted by 0.3% in Q1 due to a surge in imports ahead of tariffs, raising concerns about a possible recession. Despite recent gains, Tesla stock is down 30% for the year, with net income falling 71% in Q1. While new growth drivers like a robotaxi service in Austin, Texas could boost the stock, it remains risky at current levels. A lower-cost Model Y release is expected, but significant headwinds persist for the auto business.

Investors are wary of Tesla’s valuation at 147 times expected earnings and nine times expected sales, with a 20% decline in auto business sales in Q1. The company’s performance raises doubts about its current risk level, despite potential bullish catalysts. Analysts advise caution in buying Tesla stock due to growth-dependence and challenging near-term outlook. For those seeking lucrative stock opportunities, experts recommend joining Stock Advisor for exclusive “Double Down” alerts on promising companies. Past recommendations for Nvidia, Apple, and Netflix have yielded substantial returns for investors.

Keith Noonan has no position in Tesla stock, but The Motley Fool recommends and holds positions in the company. The author’s views and opinions do not necessarily reflect those of Nasdaq, Inc.



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