Tesla Stock Has Lost More Than a Third of Its Value in 2025: Time to Buy?
It's been a brutal year for the growth stock. Is this a buying opportunity?
Things have changed rapidly for Tesla (NASDAQ: TSLA) stock in 2025. Just a few weeks ago, I assessed whether shares were worth buying after losing a fifth of their value this year. I concluded that buying the dip didn't make sense; the valuation relative to the company's underlying fundamentals simply seemed too high. But what about now? As of this writing, shares are down about 39% year to date. Facing an even steeper decline, is now a good time to buy into this growth story?
To help us consider whether Tesla stock is a buy after falling so sharply, let's examine the company's recent performance, its key catalysts, and the stock's current valuation.
Recent business performance for Tesla (NASDAQ: TSLA) has been downright disappointing when measured against the stock's current valuation. A high-interest-rate environment weighed on Tesla's automotive demand during 2024, pressuring both unit sales volume and pricing. The electric carmaker's automotive revenue fell 6% year over year in 2024, putting total revenue up just 1% for the year. But it gets worse. Net income for the period fell 53% year over year, and free cash flow declined 18%.
