Tesla Inc (NASDAQ:TSLA) entered 2025 with significant operational difficulties and a decline in key financial metrics. Although it faces a slowdown in growth, mainly due to increasing competition and saturation in key markets, the hope for the future lies in developments in autonomous driving and the planned launch of robotaxi.
Financial Performance and Margin Declines
In the first quarter of 2025, Tesla reported revenue of $19.3 billion, down 9% year-over-year. Vehicle deliveries fell 13% to 336,681 units, while net income plunged a significant 71% to $409 million. Operating margin fell to 2.1%, the result of aggressive price discounting and investment in autonomous driving software development.
Competitive Pressure and Geopolitical Factors
In the global EV market, Tesla Inc. is losing its leadership position. It was surpassed by BYD in the number of vehicles delivered in the first quarter of 2025. In China, a key market for Tesla, sales declined by 15%, while in Germany the decline was as much as 46%. Increased competition, especially from domestic Chinese manufacturers, is thus significantly affecting the company’s growth potential.
Autonomous driving and the robotaxi project
The positive expectations of investors are mainly focused on the autonomous taxi project. Tesla Inc (NASDAQ:TSLA) plans to launch this service in June 2025 in Austin, Texas. However, a significant shift in this segment will depend on the success of Full Self-Driving (FSD) software, the current version of which still requires human intervention in about 6% of cases.
Stock Price Trend and Technical Analysis
As of May 9, 2025, Tesla Inc (NASDAQ:TSLA) shares were trading at $298.26, up 4.7% from the previous day. Technical analysis shows the formation of a bullish triple bottom formation and a breakout above the 200-day moving average. Key resistance levels are located at USD 360 and USD 430, while support levels are at USD 289 and USD 225.
Outlook and Recommendation
Despite the current financial downturn, Tesla Inc (NASDAQ:TSLA) remains an interesting technology title in the medium term. Developments in autonomous technologies, particularly FSD and the planned rollout of Robotaxi, could provide a significant boost to Tesla Inc (NASDAQ:TSLA) stock if successful. Analysts, such as Alexander Potter of Piper Sandler, have set a $400 price target on the stock. However, the development will be heavily dependent on the regulatory framework, technological advancements and Tesla’s ability to defend its position in key markets. The average price target itself with a high estimate for the short , to medium-term investment horizon has been set at $465.00 per share by Zacks.com.
