Tesla Stock Has Lost Nearly a Fifth of Its Value This Year. Buy The Dip?
Considering buying Tesla shares? Some patience might make sense.
Following an extraordinary 2023 and 2024, when Tesla (NASDAQ: TSLA) shares rose 102% and 63%, respectively, the stock is facing different sentiment in 2025. As of this writing, shares are down more than 18% year to date.
The growth stock's recent pullback raises the question: Is now a good time to buy shares of the electric-car maker? After all, Tesla CEO Elon Musk recently told investors in the company's fourth-quarter earnings call that he sees "a path" to the company potentially becoming "the most valuable company in the world by far." If Musk is right, today's pullback would represent an extraordinary buying opportunity.
At face value, Tesla stock looks wildly expensive. Shares currently trade at about 163 times earnings. This is especially difficult to comprehend when looking at the company's most recent quarterly results when total revenue grew just 2% year over year and net income fell 71%. Companies with this sort of fundamental performance usually command price-to-earnings multiples far lower.
