Tesla (NASDAQ: TSLA) has experienced a significant decline in global sales, reporting a 13% drop in Q1 2025 compared to the previous year, with even steeper declines in key markets like Europe and China. This downturn contrasts with the overall growth of electric vehicle (EV) sales in those regions. CEO Elon Musk’s pivot towards robotaxis has led to potential safety risks as Tesla plans to use a camera-only system instead of lidar sensors. The company’s market valuation, around $1 trillion or 169 times its revenue, suggests that expectations for robotaxi market dominance are already priced in.
Despite maintaining fundamental business value through its car and energy-storage segments, Tesla’s car business is trending downward. Analyst concerns suggest that if this trend continues, the stock may not reflect its true value, driven instead by Musk’s public persona. Investors are advised to approach Tesla stock with caution, considering other sturdier investment options for long-term gains.
