Why Tesla Stock is Up 18% Since Weak Q1: Should You Book Profits?

From Nasdaq: 2025-05-01 08:16:00

Tesla faced challenges with declining sales and margins this year, impacting its stock price by 30%. However, a recent 18% rise followed Elon Musk’s commitment to focus on Tesla and upcoming affordable EV models. Despite competition from BYD in China and Waymo in autonomous vehicles, investors remain hopeful. Estimates show a 22.3% decline in Tesla’s 2025 EPS, with an overvalued stock price and concerns about future growth. While Tesla’s core business faces strain, success in autonomous vehicles and robotaxi development could drive a rebound if executed well. However, caution is advised due to downward estimate revisions and macro uncertainties. Investors are advised to wait for clearer signs of execution.



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