Tesla’s Stock Performance: A Mixed Outlook for Investors

Tesla, Inc. (TSLA), located in Austin, Texas, specializes in electric vehicles (EVs), energy storage, and clean energy solutions. With a market valuation of $940.6 billion, the company designs, manufactures, and sells a range of innovative products. These include luxury EVs like the Model S, Model X, and Model Y, alongside clean energy options such as solar panels, solar roofs, and energy storage systems.

Performance Overview: TSLA vs. Market

Over the past year, Tesla’s stock has significantly outperformed the broader market. TSLA shares rose by 54%, compared to a gain of nearly 10.6% for the S&P 500 Index ($SPX). However, in 2025, TSLA’s stock has suffered a decline of 30.1%, while the SPX has only fallen by 5.3% year-to-date.

The contrast in performance is also evident against the Global X Autonomous & Electric Vehicles ETF (DRIV). This ETF has declined approximately 10.8% in the last year, with a 9.6% decrease year-to-date, which is a better performance than TSLA’s double-digit losses during the same period.

Future Growth Drivers

Upcoming initiatives, such as the launch of a robotaxi service in Austin and the introduction of Optimus humanoid robots, could positively impact Tesla’s growth trajectory. While these projects require time to scale, they present potential new revenue streams. Despite challenges within the automotive market, Tesla is gearing up to release lower-cost models and plans for mass production of its Cybercab by 2026. A resolution to ongoing tariff conflicts might further enhance Tesla’s prospects.

Recent Financial Results

On April 22, TSLA reported its Q1 results, which led to a surge in its stock price by more than 25% over six trading sessions. Revenue for this quarter was $19.3 billion, reflecting a 9.2% year-over-year decrease. Additionally, the company’s adjusted earnings per share (EPS) fell 40% year-over-year, landing at $0.27.

For the current fiscal year ending in December, analysts anticipate a decline in TSLA’s EPS by 30.4% to $1.42 on a diluted basis. The company’s earnings surprise history is somewhat mixed; Tesla exceeded expectations in two of the last four quarters but fell short in the other two.

Analyst Sentiment

Among the 41 analysts following TSLA, the consensus rating is a “Hold,” comprising 16 “Strong Buy” recommendations, two “Moderate Buys,” 13 “Holds,” and 10 “Strong Sells.” This outlook reflects a softer bullish stance compared to last month, where three analysts had suggested a “Moderate Buy.”

On April 24, Argus analyst William Selesky maintained a “Buy” rating on TSLA, adjusting the price target to $410. This implies a potential upside of 45.3% from current levels. The mean price target among analysts is $283.14, indicating a slight premium, while the highest target of $465 points to a significant upside potential of 64.8%.

On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.