Tesla today
As of 03/01/2025 at 05:45 PM ET
- 52 week range
- $138.80
▼
$488.54
- P/E ratio
- 112.45
- Price target
- $283.39
Tesla Nasdaq: Tesla It started 2025 with turmoil, seeing its shares fall more than 6% on Thursday after disappointing fourth-quarter delivery numbers. By delivering 495,570 electric vehicles in the fourth quarter, Tesla beat estimates of 512,000 shipments, marking the first annual decline in deliveries since 2020.
The stock is now down 22% from its 52-week highs. However, with optimism surrounding the rollout of Full Self-Driving (FSD) technology in right-hand drive (RHD) markets and strength in Tesla’s energy sector, a pullback could represent an attractive buying opportunity.
From laggard to leader and back again
Tesla has had a rollercoaster ride over the past year. In early 2024, the company faced challenges such as a 10% workforce reduction and shareholder concerns over CEO Elon Musk’s $56 billion compensation package. Delivery volumes fell by 8.5% year-on-year in the first quarter, which negatively impacted investor sentiment.
However, Tesla rebounded with an excellent performance in the third quarter. Deliveries rose 6.4%, operating margins reached 10.8%, and vehicle costs reached record levels. Cybertruck production is up, the Supercharger network expanded 20%, and the energy storage business is up 75% compared to last year. These developments and the sentiment and optimism surrounding the presidential election helped push the stock to all-time highs of $490.
Now, Tesla is in familiar territory again: The stock should rebound from its latest challenge. A fourth-quarter delivery failure and broader market concerns have weighed on the stock, but other segments of the company’s business tell a more compelling story.
FSD rollout: Is it a catalyst for new heights?
One of the most important opportunities available to Tesla is self-driving technology. Elon Musk has long envisioned a world in which Tesla robots generate significant recurring revenue. In 2025, Tesla plans to introduce FSD in RHD markets such as the UK, Australia, Japan and Singapore. This expansion is contingent on regulatory approval but indicates a step towards global adoption of the system.
Tesla’s heavy investment in artificial intelligence supports these developments. At its Texas Gigafactory, Tesla built Cortex, a supercomputer that leverages 100,000 NVIDIA GPUs to accelerate FSD development. The move could generate enormous value in automotive, artificial intelligence and robotics if successful.
Energy storage: an underestimated growth driver
While FSD hogs the limelight, Tesla’s energy sector has quietly become a growth force. Energy deployments rose 114% in 2024, after a 125% increase in 2023. With 31.4 gigawatt-hours of storage deployed last year, Tesla has positioned itself as a leader in renewable energy integration.
Demand for energy storage continues to rise alongside the adoption of renewable energy. Like the Megapack, Tesla’s scalable energy solutions provide infrastructure for utilities to store and deploy solar and wind energy more efficiently. This segment diversifies Tesla’s revenue sources and is in line with global trends towards decarbonisation.
Technical Perspective: A key support level is on the horizon
Tesla stock has now fallen toward a critical area near $350, a former resistance level that is easy to break through to all-time highs. Investors often view these areas as potential support areas where buying interest can emerge. Continued holding above this level could indicate a favorable entry point for long-term investors, especially given Tesla’s continued progress in FSD and energy storage.
(TSLA) price chart for Saturday, January 4, 2025
Optimism amidst short-term pain
Despite the challenges it faces, Tesla’s potential remains unparalleled. The company is at the forefront of autonomous driving, artificial intelligence, and energy innovation. While recent delivery failures and declining inventory raise concerns, the long-term outlook looks promising.
For investors with a high appetite for risk, the current pullback may provide an opportunity to buy into Tesla’s growth story at a relative discount. If FSD is successfully rolled out in RHD markets and the energy business maintains impressive growth, 2025 could be a pivotal year for Tesla.
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