Tesla (NASDAQ: TSLA) has experienced a remarkable 20,290% increase in stock value since its IPO in June 2010, translating a $5,000 investment back then into approximately $1 million today. However, the company’s financial health has faced serious challenges, with total revenue only increasing by 0.9% in 2024 before declining by 9.2% in Q1 2025, amidst a $14 billion automotive revenue report.
As of Q1 2025, Tesla’s operating income plummeted by 66%, attributed to lower average selling prices and increased expenses. The company is valued at $1 trillion with a P/E ratio of 179, indicating a potential 72% downside based on a more reasonable P/E of 50. Despite the launch of its robotaxi service in Austin, Texas, operations fell short of expectations, with fewer than two dozen Model Ys deployed and human supervision present.
In contrast, rival Alphabet’s Waymo is successfully managing 250,000 trips weekly across various cities. While ambitions like the Optimus humanoid robot could potentially tap into a trillion-dollar market, there are concerns about Tesla’s ability to meet high expectations given its history of delays, leading some analysts to remain cautious about investing in the company.
