Tesla stock has seen impressive growth in the past but recent struggles raise concerns

From Nasdaq: 2025-06-15 18:09:00

Tesla (NASDAQ: TSLA) has seen impressive stock performance in the past decade, up nearly 2,000%. However, recent struggles have caused doubts among investors, with the stock down 14% this year. Declining car volumes and shrinking margins have impacted Tesla’s profitability, leading to concerns about its future.

Elon Musk’s focus on self-driving taxis as a potential savior for Tesla faces skepticism. While Musk hypes up the technology, doubts remain about its effectiveness, especially considering Tesla’s track record with autonomous driving promises. Competing with established players like Waymo presents a significant challenge for Tesla in this space.

Despite Musk’s optimism, the reality for Tesla stock is less rosy. With falling sales, declining margins, and a high P/E ratio of 178, the stock is overvalued and poses significant downside risk. Investors may want to think twice before considering Tesla as a smart investment choice this year.

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Read more at Nasdaq: Could Buying Tesla Stock Today Be the Smartest Decision You Make This Year?