Tesla’s stock has been struggling this year, down about 21% while the S&P 500 is up 7%. Quarterly profits are low, and competition is squeezing gross margins. With a market cap of $1 trillion and high valuation, Tesla needs to show improvement to turn things around. Investing in Tesla may not be wise until it can demonstrate growth and profitability.

Tesla’s track record has been impressive, with strong returns over the past decade. However, the stock could be on track for a decline of more than 20% this year, only the second time in 10 years. Despite being a leading EV company, Tesla’s high valuation may limit future growth potential. It may not be the best time to invest in Tesla until it can show positive results.

Tesla’s CEO Elon Musk’s involvement in government initiatives has led to negative press, impacting the stock. With Musk stepping away from that role, investors hoped for a change. However, Tesla’s stock continues to struggle with low quarterly profits and tough competition. The stock may not recover this year, making it a risky investment at the moment.

Read more at Nasdaq: Tesla Stock Could Be on Track to Do This for Only the Second Time in 10 Years. (Hint: It’s Not a Good Thing)