Tesla Has Big Plans to Reaccelerate Sales. But Is a Turnaround Already Priced In?

For Tesla (NASDAQ: TSLA) and its shareholders, it's been a rough start to 2025. As of this writing, shares are down about 30% year to date. Even worse, the stock is down more than 40% from its 52-week high. With increasing economic uncertainty and persistently high interest rates affecting vehicle affordability, the company's automotive business is hurting. First-quarter automotive revenue fell 20% year over year. This was worse than Tesla's 8% year-over-year decline in the fourth quarter of 2024. Adding to concerns, management refrained from providing guidance for vehicle deliveries this year, choosing to wait to see if the company has more clarity about its business when it reports its second-quarter results.

But despite reporting poor first-quarter results, including a 71% year-over-year drop in earnings per share, the stock has largely been in an uptrend since the report. Indeed, shares were trading below $240 when Tesla reported results (more than $40 below where the stock is trading at the time of this writing). The stock's recovery from this level is likely because CEO Elon Musk made investors believe the company's upcoming product launches can help turn Tesla's fortunes around. After all, Musk said he'll be giving the company significantly more of his attention next month -- welcome news to shareholders who have watched him spend much of his time on President Trump's DOGE (Department of Government Efficiency) initiative recently.

With Musk planning to give Tesla's turnaround plans more attention in the coming weeks, is now a good time to buy the stock? Or are Tesla's efforts to revitalize its growth already priced in?

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