Tesla today
As of 01/03/2025 17:45 Eastern
- 52 week range
- $138.80
▼
$488.54
- P/E ratio
- 112.45
- Target price
- $283.39
Tesla NASDAQ:TSLA It’s had a turbulent start to 2025, with its shares falling more than 6% on Thursday after disappointing fourth-quarter delivery performance. By delivering 495,570 electric vehicles in the fourth quarter, Tesla missed estimates of 512,000 deliveries, marking its first annual decline in deliveries since 2020.
The stock is now 22% off its 52-week high. However, given optimism around the rollout of Full Self-Driving (FSD) technology in right-hand drive (RHD) markets and strength in Tesla’s energy segment, the pullback could be an attractive buying opportunity on the dip.
From laggard to leader and back
Tesla has been on a rollercoaster ride over the past year. In early 2024, the company faced challenges including a 10% workforce reduction and shareholder concerns over CEO Elon Musk’s $56 billion compensation package. Shipments fell 8.5% year-on-year in the first quarter, dampening investor sentiment.
However, Tesla bounced back with stellar third-quarter results. Deliveries rose 6.4%, operating margin reached 10.8%, and vehicle costs hit a record low. Cybertruck production increased, the Supercharger network expanded 20%, and the energy storage business grew 75% compared to last year. These developments, along with the sentiment and optimism surrounding the presidential election, helped push the stock to a new all-time high of $490.
Now Tesla is back in familiar territory, with the stock set to rebound from its latest test. Missed deliveries in the fourth quarter and broader market issues weighed on the stock, but other parts of the company’s business tell a more compelling story.
FSD Implementation: A Catalyst for New Highs?
One of Tesla’s most significant capabilities is its self-driving technology. Elon Musk has long imagined a world in which Tesla robotaxis would generate significant recurring revenue. In 2025, Tesla plans to bring FSD to right-hand drive markets such as the UK, Australia, Japan and Singapore. The expansion is subject to regulatory approval but signals a step toward global rollout of the system.
At the heart of these advances are Tesla’s massive investments in artificial intelligence. At its gigafactory in Texas, Tesla built Cortex, a supercomputer that uses 100,000 NVIDIA GPUs to speed up FSD development. If successful, this move could bring huge benefits to the automotive, artificial intelligence and robotics industries.
Energy Storage: An Underrated Growth Driver
While FSD is getting everyone’s attention, Tesla’s energy segment has quietly become a growth engine. Energy penetration grew 114% in 2024, following a 125% increase in 2023. With 31.4 GWh of storage capacity deployed last year, Tesla is positioning itself as a leader in renewable energy integration.
Demand for energy storage continues to grow along with the adoption of renewable energy sources. Like Megapack, Tesla’s scalable energy solutions provide utility infrastructure for more efficient storage and use of solar and wind energy. This segment diversifies Tesla’s revenue streams and aligns with global decarbonization trends.
Technical Perspective: Key Support Level in sight
Tesla shares have now fallen to the critical area around $350, a former resistance level facilitating a breakout to all-time highs. Investors often view such zones as areas of potential support where buying interest could emerge. Sustained holding above this level could signal a favorable entry point for long-term investors, especially given Tesla’s continued advancements in FSD and energy storage.
Tesla, Inc. price chart (TSLA) on Saturday, January 4, 2025
Optimism amid short-term pain
Despite the challenges, Tesla’s potential remains unmatched. The company is at the forefront of autonomous driving, artificial intelligence and energy innovation. While recent supply disruptions and falling inventories are cause for concern, the long-term outlook appears promising.
For investors with a heightened risk appetite, the current pullback could provide an opportunity to buy into Tesla’s growth story at a relative discount. If FSD successfully rolls out in right-hand drive markets and the energy business maintains impressive growth, 2025 could be a pivotal year for Tesla.
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