Tesla (TSLA) is the largest automobile manufacturer in the world, valued above $1.1 trillion. Shares of the electric vehicle maker went public in June 2010 and have since returned more than 25,000% to investors. 

While Tesla stock has delivered game-changing returns to long-term shareholders, it has underperformed the broader market in 2025 due to headwinds such as still-high interest rates, rising competition, slowing consumer demand, and narrowing profit margins. 

Today, Tesla stock trades 30% below its all-time highs and remains a volatile investment. Notably, hedge fund manager Daniel Loeb’s recent 13F shows a defensive market stance. The fund manager purchased SPDR S&P 500 ETF (SPY) puts and exited positions in Meta (META) and Tesla while reducing stakes in other big tech companies including Amazon (AMZN) and Microsoft (MSFT). 

He initiated new positions in Nvidia (NVDA), Pinterest (PINS), AT&T (T), and consumer and real estate companies, suggesting a strategic pivot toward defensive sectors amid tariff-related economic uncertainty.

Should you follow the billionaire and sell TSLA stock right now?

Is Tesla Stock a Good Buy Right Now?

Tesla delivered lackluster first-quarter results as the electric vehicle maker navigated a production transition across all four factories for its best-selling Model Y. Revenue declined 9% year-over-year to $19.3 billion, while GAAP operating income fell 66% to $399 million, indicating a 2.1% operating margin.

Tesla delivered 336,681 vehicles in Q1, down 13% year-over-year, due to several weeks of lost production during the Model Y changeover. Despite this temporary setback, Tesla emphasized that this simultaneous global production line update was an “industry first,” demonstrating its advanced operational capabilities.

Energy Generation and Storage remained a bright spot, with revenue growing 67% year-over-year to $2.7 billion. Tesla’s Shanghai Megafactory produced over 100 megapacks during the quarter, although they weren't counted in quarterly deployments as they were en route to customers.

Tesla’s autonomous vehicle efforts continue advancing rapidly, with Model 3, Model Y, and Cybertruck now driving autonomously from production lines to outbound lots in Fremont and Texas factories. The company reaffirmed plans for a pilot launch of its Robotaxi in Austin by June, with Optimus robot production beginning in 2025.

What’s Next for TSLA Stock?

Looking ahead, Tesla highlighted significant uncertainty around evolving trade policies and their impact on global supply chains. Tesla ended Q1 with $37 billion in cash. It generated $2.2 billion in operating cash flow and $664 million in free cash flow. 

Management confirmed plans for new, more affordable vehicle models with production starting in the first half of 2025. Tesla expects these vehicles to help drive more than 60% growth over 2024 production levels by utilizing existing manufacturing lines, enabling a more capital-efficient approach during uncertain economic times.

Analysts tracking TSLA stock expect adjusted net income margins to improve from 8.6% in 2024 to almost 16% in 2029. In this period, free cash flow margins are forecast to expand from 3.7% to 11.8%. However, investors should take these projections with a pinch of salt, given Tesla has missed Wall Street earnings estimates in several recent quarters. 

Out of the 41 analysts covering TSLA stock, 16 recommend “Strong Buy,” two recommend “Moderate Buy,” 13 recommend “Hold,” and 10 recommend “Strong Sell.” The average target price for TSLA stock is $284, below the current trading price.