Tesla's stock could plummet by 70% as declining EV sales impact financial results.

Tesla recently launched a supervised robotaxi program, but its declining passenger EV sales are impacting its financial results. With Tesla stock trading at a high valuation, analysts believe the company’s true value lies in its futuristic products like robotaxis and Optimus humanoid robots. However, competition and declining sales are posing challenges for Tesla in the EV market.

Tesla’s EV sales saw a 1% decline in 2024 and a 13% drop in the first quarter of 2025. Competition from Chinese brands and a decrease in sales in key markets like Europe are affecting Tesla’s market share. The company’s recent production and delivery numbers indicate a continued decline in sales, raising concerns about its financial performance.

Elon Musk is focusing on autonomous mobility with the Cybercab robotaxi, aiming to generate significant revenue for Tesla. However, Tesla’s FSD software is not yet approved for unsupervised use, hindering its progress. Despite launching a supervised robotaxi program, Tesla faces stiff competition from companies like Alphabet’s Waymo in the autonomous driving space.

Tesla’s stock is trading at a high price-to-earnings ratio of 173.4, much higher than big-tech peers like Nvidia, Microsoft, Apple, Amazon, and Alphabet. Analysts warn of a potential crash in Tesla stock of 70% or more if its EV sales continue to decline or its robotaxi business fails to take off. The company’s financial results and stock performance are closely tied to its ability to grow sales and navigate the competitive EV market.

Investors are urged to consider the risks associated with Tesla’s current situation, including the potential for significant stock declines if sales do not improve. With the company’s stock trading at a high valuation, uncertainties around its autonomous driving initiatives and market competition pose challenges for Tesla’s future performance. Analyzing Tesla’s financials and market position is crucial for investors considering the company’s stock.

Read more at Nasdaq: Elon Musk Thinks Tesla Will Become the World’s Most Valuable Company. Here’s Why Its Stock Could Plunge by 70% (or More) Instead.