In light of Tesla's predicted profitability for 2025, is it advisable to invest in TSLA shares?
Tesla's Rollercoaster Ride: A Look at the Latest Developments
Tesla, the electric vehicle (EV) giant, is currently a mix of excitement and uncertainty. The company's tesla stock performance over the past year has been nothing short of remarkable, yet its core business remains somewhat shaky.
In the past 52 weeks, tesla stock has surged nearly 87%, with a staggering 79% increase in just six months. This impressive growth continued into 2025, with the stock turning green for the year and surging double digits from April lows. However, the second quarter of 2025 saw a setback, with Tesla logging its worst quarter since 2022.
The Q2 earnings report showed a miss on the bottom line, with EPS declining 23% annually to $0.40. Revenue also took a hit, coming in at $22.5 billion, a 12% decrease year over year. This dip in performance has raised concerns about the health of Tesla's EV business.
Despite these challenges, analysts remain cautiously optimistic about Tesla's future. They have significantly raised their expectations for Tesla's 2026 performance based on new product launches and expanded production capacities, particularly in the energy storage and solar sectors.
Analysts' price target forecasts for tesla stock in the mid-term vary, averaging around $310 to $374. The bullish predictions are led by Wedbush, which has set a Street-high target of $500 for tsla stock, implying a potential upside of 17%.
However, the overall Wall Street rating for tsla stock is a "Hold." Out of 42 analysts covering the stock, 12 recommend a "Strong Buy," 2 have a "Moderate Buy," 18 suggest a "Hold," and 10 have a "Strong Sell" rating.
Elon Musk, Tesla's CEO, has shown his faith in the company by purchasing 2.57 million shares of tesla stock for about $1 billion.
The stock was further battered by President Donald Trump's tariff shock in April, adding to the turbulence in Tesla's journey.
Looking ahead, the upside for tsla stock is real if robotaxis and robots deliver. The potential of these technologies could revolutionise the automotive industry and propel Tesla to new heights.
In conclusion, tesla stock performance over the past year has been impressive, but its core EV business remains shaky. Despite this, analysts remain optimistic about Tesla's future, particularly in light of new product launches and expanded production capacities. The overall Wall Street rating for tsla stock is a "Hold," but Elon Musk's recent share purchase indicates confidence in the company's future. The challenges faced by Tesla, including the tariff shock and Q2 earnings miss, are significant, but the potential of robotaxis and robots could pave the way for a bright future for the company.
