Should You Buy, Sell, or Hold Tesla Stock?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 21 2025
0mins
Source: Fool
Tesla's Stock Performance: Tesla shares have experienced a significant increase of 2,300% over the past decade, driven by the company's innovative electric vehicle (EV) offerings, but the stock is currently seen as overvalued with a high price-to-earnings (P/E) ratio of 246.
Challenges and Future Prospects: The company faces declining automotive revenue and increased competition, leading to skepticism about its future growth, despite some investors betting on new ventures like the Robotaxi business and humanoid robots to drive sales and earnings in the long term.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy TSLA?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on TSLA
Wall Street analysts forecast TSLA stock price to rise
30 Analyst Rating
12 Buy
11 Hold
7 Sell
Hold
Current: 399.150
Low
25.28
Averages
401.93
High
600.00
Current: 399.150
Low
25.28
Averages
401.93
High
600.00
About TSLA
Tesla, Inc. designs, develops, manufactures, sells and leases high-performance fully electric vehicles and energy generation and storage systems, and offers services related to its products. Its segments include automotive, and energy generation and storage. The automotive segment includes the design, development, manufacturing, sales and leasing of high-performance fully electric vehicles, and sales of automotive regulatory credits. It also includes sales of used vehicles, non-warranty maintenance services and collisions, part sales, paid supercharging, insurance services revenue and retail merchandise sales. The energy generation and storage segment include the design, manufacture, installation, sales and leasing of solar energy generation and energy storage products and related services and sales of solar energy systems incentives. Its consumer vehicles include the Model 3, Y, S, X and Cybertruck. Its lithium-ion battery energy storage products include Powerwall and Megapack.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
- Musk's Wealth Milestone: With the successful IPO of SpaceX, Musk's stake in the company is now valued at over $760 billion, pushing his net worth past $1 trillion and making him the world's first trillionaire, despite a significant drop in Tesla's profits.
- SpaceX IPO Performance: Priced at $135 per share, SpaceX opened around $150 and ended its first trading day with a valuation exceeding $2 trillion, raising approximately $75 billion, indicating strong market confidence in its future growth potential.
- Tesla and SpaceX Relationship: Tesla holds a small stake in SpaceX, which is also a customer for Tesla's Megapack batteries and Cybertrucks, highlighting the increasingly intertwined business operations and strategic positioning of Musk across both companies.
- Shift in Investor Focus: With SpaceX's public debut, investors can now directly bet on Musk's ambitions in space and AI without the risks associated with Tesla's slowing growth, potentially impacting Tesla's stock performance and market expectations.
See More
- Strong IPO Performance: SpaceX's IPO successfully attracted strong orders from both retail and institutional investors at an offering price of $135 per share, making it the sixth-largest publicly listed company in the U.S., showcasing Musk's influence and market confidence.
- Options Trading Set to Launch: Options trading for SpaceX is expected to begin on Tuesday, with heavy and volatile market activity anticipated, reflecting the high interest from investors in the company's stock and potentially driving significant trading volume.
- Stock Sale Restrictions Lifted: SpaceX plans to gradually allow a large portion of its shares to be resold before the usual six-month post-IPO restriction period, a strategy aimed at preventing a massive sell-off in the market, which could lead to increased volatility over the coming months.
- Inclusion in Nasdaq Index: SpaceX is set to be added to the Nasdaq 100 and several large-cap stock indexes this month, which is expected to drive share price gains while raising discussions about passive investors' risk awareness and its potential impact on future market dynamics.
See More
- IPO Market Drawdown Phenomenon: According to data from Equity Clock, many of the largest IPOs in history have experienced significant declines of 20% to 60% after their first trading day, highlighting the vulnerability and volatility of newly listed companies.
- High-Profile Listing Cases: For instance, both Amazon and Robinhood saw their stock prices decline nearly 90% from post-IPO peaks, while Uber, Twitter, and Coinbase also faced substantial drops, indicating that even well-known firms are not immune to market fluctuations.
- Long-Term Return Potential: Despite experiencing significant drawdowns post-listing, historical data shows that these companies often achieve strong long-term returns, suggesting that investors should remain attentive to potential opportunities in upcoming IPOs.
- Market Sentiment Assessment: Currently, investors are evaluating the outlook for the next wave of high-profile IPOs, emphasizing that large post-listing pullbacks are common occurrences that may impact market confidence and investment decisions regarding newly listed companies.
See More
- Market Value Surge: Micron Technology skyrocketed from $500 billion to $1 trillion in just 48 days, becoming the fastest company in history to reach this milestone, surpassing Tesla's previous record of 230 days, highlighting its robust performance in the semiconductor sector.
- Financial Performance Spike: In the second quarter, Micron's revenue surged 196% to $23.8 billion, with non-GAAP net income soaring 682% to $12.20 per share, although this growth was primarily driven by a supply shortage in memory chips, indicating high market volatility.
- Uncertain Future Outlook: Despite current high memory prices due to surging demand, Wall Street projects a 70% decline in Micron's earnings by 2029, reflecting concerns over the cyclical nature of the memory chip market, which may impact investor confidence.
- Intensifying Competition: As major competitors like Samsung and SK Hynix ramp up production capacity, Micron faces increasing market pressure, with expectations that the supply-demand dynamics for memory chips will reverse in the coming years, potentially leading to price crashes that could affect the company's long-term profitability.
See More
- Market Optimism: The agreement between the US and Iran for a ceasefire has led to a rise in tech stocks on Monday, with overall market sentiment buoyed by hopes that the four-month-long conflict could be winding down, alleviating pressure on the global economy.
- Record IPO for SpaceX: SpaceX's IPO on Friday was the largest in history, elevating its valuation above Tesla's and making Elon Musk the world's first trillionaire, demonstrating strong investor confidence in the space industry.
- Future IPO Potential: The success of SpaceX sets the stage for other high-profile IPOs, particularly from leading AI startups OpenAI and Anthropic, which have confidentially filed for public offerings, indicating an intensifying competition in the sector.
- Investor Attention Dynamics: Investors will closely monitor how SpaceX shares open and trade throughout this holiday-shortened week for further bullish signs, reflecting ongoing interest and confidence in tech stocks.
See More
- First Day Trading Performance: SpaceX's stock surged over 19% on its IPO day, opening at $150 and closing above $160, achieving a market valuation of $2.1 trillion, which places it among the world's leading tech giants and reflects strong market confidence in its growth prospects.
- Record IPO Financing: The IPO raised $75 billion, setting a record for the largest IPO ever, indicating investor optimism regarding SpaceX's long-term potential in rocket launches, satellite connectivity, and artificial intelligence, thereby solidifying its market position.
- Strong Revenue Growth: SpaceX's Starlink service generated $4.4 billion in operational income last year, marking a 120% year-over-year increase, demonstrating robust performance in the satellite connectivity market and promising continued revenue growth for the company.
- High-Risk Investment Outlook: Despite SpaceX's significant growth potential, its capital expenditures in AI reached $12 billion, and the company reported an annual loss of $4.9 billion, highlighting the investment risks and technological uncertainties it faces, necessitating careful evaluation of future investment opportunities.
See More











