Is Tesla Stock a Buy? Here's the Good News and the Bad News.

On Jan. 28, Tesla (NASDAQ: TSLA) reported its operating results for the last 4th of 2025. CEO Elon Musk's league telephone with investors was the highlight, due to the fact that though the institution had suffered a diminution successful electrical conveyance (EV) sales, helium talked astir what the wide concern could look similar successful the future.

Musk provided updates connected the accumulation timeline for Tesla's autonomous robotaxi, the Cybercab, and announced that the institution volition discontinue 2 of its astir fashionable rider EVs to escaped up manufacturing capableness for its humanoid robot, Optimus.

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Converting each of this caller accusation into a wide concern determination isn't easy, truthful let's interruption down the bully quality and the bad.

Tesla sold 1.79 cardinal rider EVs successful 2024, which was a 1% driblet from the anterior year. That diminution accelerated to 9% during 2025, with conscionable 1.63 cardinal deliveries, which should beryllium mounting disconnected alarm bells for investors, due to the fact that EV income inactive relationship for 73% of the company's full revenue.

Competition has been a large operator of Tesla's caller struggles. The institution is contending with charismatic EV options from bequest automakers astatine the premium extremity of the market, but it's besides losing marketplace stock to manufacturers similar China-based BYD (OTC: BYDDY), which offers cheaper options for budget-conscious consumers.

BYD sells its entry-level Dolphin Surf EV for conscionable $26,900 crossed Europe, whereas Tesla's Model 3 starts astatine implicit $40,000. Therefore, it's nary astonishment BYD's income rocketed by 228% crossed the portion past year, portion Tesla's income plunged by 37%. In fact, Tesla's diminution was the largest of immoderate different automaker with a beingness successful Europe.

Elon Musk believes autonomous cars are the aboriginal of the mobility industry, truthful helium has resisted calls to put Tesla's resources into designing a low-cost rider EV to vie with brands similar BYD. In fact, he's going successful the implicit other absorption by shrinking Tesla's rider EV lineup, pulling 2 vehicles (the Model S and Model X) retired of the market.

Tesla's EV income are apt to diminution adjacent further successful 2026. However, the institution hopes its Cybercab robotaxi volition marque up for immoderate of the mislaid revenue. It volition tally connected Tesla's Full Self-Driving (FSD) software, enabling it to haul passengers and adjacent tiny commercialized loads 24 hours per day, 7 days per week. In theory, this volition make a bid of new, highly profitable gross streams for the company.