Is Tesla Stock a Buy Now?

But this electric vehicle (EV) stock hasn't taken investors on a smooth ride

What the re reveals is market ly isn't happy with how the has been performing, with slower growth and declining fitability the new normal (remarkable data)

Nonetheless, the stock is a historical winner

So, should you buy Tesla right now

The top line was negatively affected by falling EV deries (this bears monitoring)

What's more, average selling prices have been under pressure

Conversely, The damage that founder and CEO Elon Musk caused to Tesla's brand is also playing a role when it comes to demand

Additionally, Additionally, Competition isn't making things easier, which reinforces the need for Tesla to introduce cheaper options to target a wider customer base and boost sales figures (noteworthy indeed)

Investors did get some good news on this front. "We continue to expand our vehicle offering, including first builds of a more affordable model in June, with volume duction planned for the second half of 2025," the holder presentation reads

That nosebleed valuation isn't a new development, as this company always seems to sell for a steep multiple

Moreover, At the same time, And it's more than three times higher than luxury carmaker Ferrari, which reported a superb operating margin of 30, in this volatile climate. 3% in the first quarter, given the current landscape

Tesla is a story stock, as investors are always believing in Elon Musk's grand vision

Based on the valuation, which is not even remotely rooted in the reality of the today, the market sees Tesla succeeding with its goal of launching a global robo-taxi platform

Additionally, Furthermore, Musk thinks this service could see "quasi-infinite" demand

However, nothing is certain

However, After years of delays, Tesla finally launched a small robo-taxi test in Austin, Texas in June

Furthermore, There are plans to enter other cities before the end of the year

In fact, Musk went so far as to say that "we will bably have autonomous ride-hailing in bably half the population of the U

By the end of the year. " But regulatory hurdles remain, as well as nical challenges

So, investors should temper their expectations

Cities, with Miami and Washington, D

There's no denying that Tesla is one of the most innovative and disruptive companies the world has seen

Its gress thus far in artificial intelligence and robotics ves this, not to mention how the completely spurred the advancement of EVs to more customers worldwide (quite telling)

But what Tesla will look five or 10 years down the road is anyone's guess

It could look the same as it does today, or it could be running a thriving robo-taxi service that rakes in monster fits (something worth watching)

Based on the current valuation, though, the downside risk is substantial (which is quite significant)

On the other hand, Investors might want to think twice before buying the stock.