Tesla Is Jumping Today -- Is the Stock a Buy?
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After sell-offs in yesterday's trading, Tesla (TSLA 4. 77%) stock is rising Wednesday. The company's price was up 4. 6% as of 2 p. ET amid the backdrop of a 0....
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July 2, 2025
02:32 PM
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After sell-offs in yesterday's trading, Tesla (TSLA 4. 77%) stock is rising Wednesday
The company's price was up 4. 6% as of 2 p
ET amid the backdrop of a 0. 3% gain for the S&P 500 and a 0. 7% gain for the Nasdaq Composite
The stock had been up as much as 5. 4% earlier in the session
Tesla published its second-quarter vehicle dery figures yesterday, and the company's valuation is climbing despite a big performance drop-off
Has reached a trade agreement with Vietnam is supporting bullish momentum for the stock, and a much weaker than expected June jobs report from ADP also has some investors ramping up bets that the Federal Reserve will cut interest rates at its meeting
Image source: Getty Images
With the report that it published this morning, Tesla announced that it had dered 384,000 vehicles in this year's second quarter -- a 14% year-over-year decline
Meanwhile, the average analyst estimate compiled by FactSet had called for the to der 387,000 vehicles in the period
Is Tesla stock a buy right now
Despite some rallies connected to the company's robotaxi and opportunities in artificial intelligence (AI) and robotics, Tesla still ranks as this year's worst-performing "Magnificent Seven" stock
As of this writing, the company's price is down roughly 22% across 2025
Even though the company has seen a substantial valuation pullback across this year's trading, Tesla is still valued at apximately 10. 5 times this year's expected sales and 168 times expected earnings
While earnings headwinds are expected to moderate somewhat, the company is also still trading at apximately 111 times next year's expected earnings
Tesla should be able to score meaningful wins in the robotaxi, but these wins will take time to materialize -- and the core is struggling
While Tesla still has the potential to be a winner for investors with a very long time horizon, the significance of the challenges facing the EV suggests that investors may be able to build positions at a better entry point
Keith Noonan has no position in any of the stocks mentioned
The Motley Fool has positions in and recommends Tesla
The Motley Fool has a disclosure policy.
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