Tesla Is Plummeting Again -- Is It Time to Buy the Stock?

1 week ago 13

Keith Noonan, The Motley Fool

Thu, Apr 10, 2025, 10:51 AM 3 min read

On the heels of immense gains yesterday, Tesla (NASDAQ: TSLA) banal is seeing large sell-offs successful Thursday's trading. The electric-vehicle (EV) company's stock terms was down 9.9% arsenic of 1:15 p.m. ET amid the backdrop of a 5.3% diminution for the S&P 500 (SNPINDEX: ^GSPC) and a 6.1% diminution for the Nasdaq Composite (NASDAQINDEX: ^IXIC).

While President Donald Trump issued a 90-day suspension of reciprocal tariffs for different countries yesterday, helium announced that the import taxation complaint connected products from China would beryllium raised from 104% to 125%. The erstwhile tariff complaint was already highly high, and the determination to rise import taxes connected China adjacent higher is highlighting rapidly deteriorating relations with the U.S. and the imaginable for conditions to proceed worsening. As of this writing, Tesla banal is present down 39% crossed 2025's trading and 48% from its valuation peak.

Despite a large valuation pullback, Tesla banal is inactive trading astatine astir 95.5 times this year's expected net and 7.4 times this year's expected sales. Given comparatively anemic show for the concern precocious and concerns that the company's marque whitethorn person been importantly damaged by CEO Elon Musk's foray into politics, the company's valuation multiples suggest that the banal is inactive precise risky.

While the motorboat of a caller conveyance exemplary sometime this 4th could supply a important affirmative income catalyst, Tesla banal inactive looks excessively costly if you're valuing the institution chiefly based connected the halfway EV business. On the different hand, the car specializer is successful the aboriginal stages of rolling retired its self-driving robotaxi concern -- and robotics projects could beryllium a meaningful maturation operator further out. The robotaxi work could go a almighty net operator for Tesla, but it doesn't marque consciousness to bargain the banal if you don't deliberation the institution volition people large wins connected that front.

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