Tesla's Weak Financial Performance in 2025 Raises Concerns
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy TSLA?
Source: Fool
- Poor Stock Performance: Year to date, Tesla's (TSLA) shares are down over 8%, despite CEO Elon Musk's confirmation on social media that the company expects to launch steering-wheel-free electric Cybercabs for under $30,000 before 2027, highlighting a disconnect between market expectations and current stock performance.
- Declining Financial Metrics: In 2025, Tesla's total revenue fell by 3% year-over-year, with automotive revenue down 10% and earnings per share plummeting by 47%, indicating significant challenges in profitability that could undermine investor confidence.
- Insufficient Capital Expenditures: Tesla's capital expenditures in 2025 were $8.5 billion, which is trivial compared to its market capitalization of over $1.5 trillion and a decrease from $11.3 billion in 2024, raising concerns about the company's future growth potential.
- Future Spending Plans: Although Tesla anticipates capital expenditures exceeding $20 billion in 2026, the allocation across multiple projects raises investor skepticism about the company's ability to effectively utilize these funds for growth.
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Analyst Views on TSLA
Wall Street analysts forecast TSLA stock price to fall
30 Analyst Rating
12 Buy
11 Hold
7 Sell
Hold
Current: 410.630
Low
25.28
Averages
401.93
High
600.00
Current: 410.630
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.
Tesla's Weak Financial Performance in 2025 Raises Concerns
- Poor Stock Performance: Year to date, Tesla's (TSLA) shares are down over 8%, despite CEO Elon Musk's confirmation on social media that the company expects to launch steering-wheel-free electric Cybercabs for under $30,000 before 2027, highlighting a disconnect between market expectations and current stock performance.
- Declining Financial Metrics: In 2025, Tesla's total revenue fell by 3% year-over-year, with automotive revenue down 10% and earnings per share plummeting by 47%, indicating significant challenges in profitability that could undermine investor confidence.
- Insufficient Capital Expenditures: Tesla's capital expenditures in 2025 were $8.5 billion, which is trivial compared to its market capitalization of over $1.5 trillion and a decrease from $11.3 billion in 2024, raising concerns about the company's future growth potential.
- Future Spending Plans: Although Tesla anticipates capital expenditures exceeding $20 billion in 2026, the allocation across multiple projects raises investor skepticism about the company's ability to effectively utilize these funds for growth.
See More
Tesla Launches Production of Cybercab, Aiming for $30,000 Price Point
- Production Milestone: Tesla has successfully rolled off the first Cybercab from its Texas gigafactory, marking a significant advancement in the company's autonomous driving ambitions, with volume production slated to begin in April, further positioning Tesla in the electric taxi market.
- Efficiency Boost: CEO Elon Musk stated that Tesla's production lines will ultimately be able to produce a Cybercab every 10 seconds, significantly enhancing the company's output to meet future demand for autonomous taxis in a rapidly evolving market.
- Pricing Commitment: Musk reiterated on social media that the Cybercab is targeted to be priced below $30,000, despite skepticism from the market; this pricing strategy aims to attract more consumers and expand market share, particularly in the competitive EV landscape.
- Technological Innovation: The Cybercab will feature wireless charging technology, eliminating the need for plug-in ports, along with butterfly-style doors and the sharp design of the Cybertruck, albeit without the stainless steel to reduce costs, enhancing user experience and product appeal.
See More
Tesla FSD Adoption Nears 1.1 Million Users
- FSD User Growth: Tesla disclosed in a call with analysts that FSD adoption reached nearly 1.1 million paid customers in Q4, indicating a growing acceptance of the technology globally, despite ongoing regulatory scrutiny.
- Mileage Data: Tesla reported that users of its FSD technology have driven over 8 billion miles, showcasing the extensive real-world application of the technology, although it still requires active supervision from drivers.
- Safety Controversies: While Tesla claims that FSD reduces collision risks, achieving one major collision every 5.3 million miles, the technology is under investigation by the National Highway Traffic Safety Administration for allegedly breaching traffic laws.
- Comparison with Waymo: Waymo operates a fleet of over 3,000 fully autonomous vehicles that have cumulatively covered over 127 million miles, highlighting its lead in fully autonomous driving technology, which Tesla still needs to catch up on.
See More
Tesla's Capital Expenditure Plans Under Scrutiny
- Insufficient Capital Expenditure: Tesla's capital expenditures in 2025 were $8.5 billion, down from $11.3 billion in 2024 and $8.9 billion in 2023, indicating a cautious spending approach that may hinder future growth potential given its market cap exceeding $1.5 trillion.
- Future Spending Expectations: Although Tesla anticipates capital expenditures exceeding $20 billion in 2026, this figure remains inadequate in the context of its massive market capitalization and will be spread thin across multiple projects, potentially leading to misallocation of resources and impacting execution efficiency.
- New Project Advancements: The company plans to invest in six factories, including battery cell production and the CyberCab project, while also expanding its AI compute infrastructure and existing factory capacities; however, these ambitious investments face the risk of being underfunded due to resource dispersion.
- Poor Market Performance: Despite CEO Elon Musk's optimistic outlook, including the launch of a Cybercab priced below $30,000 before 2027, Tesla's stock has fallen over 8% year-to-date, reflecting market concerns regarding its financial performance.
See More
Robinhood Investors Favor Blue-Chip Stocks
- Investor Preferences: The ten most owned stocks on Robinhood include blue-chip stocks like Amazon, Apple, and Alphabet, indicating that investors are still focused on high-growth tech plays, even as they avoid more speculative stocks.
- Google's AI Potential: Google's Gemini generative AI platform is rapidly growing, with analysts expecting revenue and EPS to grow at CAGRs of 15% and 12% from 2025 to 2028, highlighting its strong potential in the digital advertising and cloud infrastructure markets.
- Amazon's Market Advantage: As the world's largest e-commerce and cloud infrastructure company, Amazon leverages AWS profits to expand its retail business, with analysts projecting revenue and EPS growth at CAGRs of 12% and 18% from 2025 to 2028, indicating robust future growth.
- Investment Recommendation: Analysts view both Alphabet and Amazon as evergreen stocks worth investing in, and Robinhood investors' choices reflect confidence in these stocks, especially amid current market volatility, showcasing their long-term investment value.
See More
Robinhood Investors Favor Alphabet and Amazon Stocks
- Investor Preference: On the Robinhood platform, Alphabet and Amazon are the most favored stocks, each receiving 58 buy ratings, indicating strong investor confidence and reflecting market recognition of their long-term growth potential.
- Alphabet's Diversification: With a robust ecosystem that includes a search engine, cloud services, and a generative AI platform, Alphabet is expected to grow its revenue and EPS at CAGRs of 15% and 12% from 2025 to 2028, demonstrating its ongoing expansion capabilities in the digital advertising and cloud markets.
- Amazon's Market Leadership: As the world's largest e-commerce and cloud infrastructure company, Amazon's AWS business supports its retail operations, with projected revenue and EPS growth rates of 12% and 18% from 2025 to 2028, showcasing its potential in the rapidly growing AI market.
- Investment Value: Despite market volatility, analysts still view Alphabet and Amazon as evergreen stocks worth investing in, indicating that Robinhood investors are leaning towards stable blue-chip stocks rather than more speculative ones.
See More
Tesla's Weak Financial Performance in 2025 Raises Concerns
- Poor Stock Performance: Year to date, Tesla's (TSLA) shares are down over 8%, despite CEO Elon Musk's confirmation on social media that the company expects to launch steering-wheel-free electric Cybercabs for under $30,000 before 2027, highlighting a disconnect between market expectations and current stock performance.
- Declining Financial Metrics: In 2025, Tesla's total revenue fell by 3% year-over-year, with automotive revenue down 10% and earnings per share plummeting by 47%, indicating significant challenges in profitability that could undermine investor confidence.
- Insufficient Capital Expenditures: Tesla's capital expenditures in 2025 were $8.5 billion, which is trivial compared to its market capitalization of over $1.5 trillion and a decrease from $11.3 billion in 2024, raising concerns about the company's future growth potential.
- Future Spending Plans: Although Tesla anticipates capital expenditures exceeding $20 billion in 2026, the allocation across multiple projects raises investor skepticism about the company's ability to effectively utilize these funds for growth.
See More
Tesla Launches Production of Cybercab, Aiming for $30,000 Price Point
- Production Milestone: Tesla has successfully rolled off the first Cybercab from its Texas gigafactory, marking a significant advancement in the company's autonomous driving ambitions, with volume production slated to begin in April, further positioning Tesla in the electric taxi market.
- Efficiency Boost: CEO Elon Musk stated that Tesla's production lines will ultimately be able to produce a Cybercab every 10 seconds, significantly enhancing the company's output to meet future demand for autonomous taxis in a rapidly evolving market.
- Pricing Commitment: Musk reiterated on social media that the Cybercab is targeted to be priced below $30,000, despite skepticism from the market; this pricing strategy aims to attract more consumers and expand market share, particularly in the competitive EV landscape.
- Technological Innovation: The Cybercab will feature wireless charging technology, eliminating the need for plug-in ports, along with butterfly-style doors and the sharp design of the Cybertruck, albeit without the stainless steel to reduce costs, enhancing user experience and product appeal.
See More
Tesla FSD Adoption Nears 1.1 Million Users
- FSD User Growth: Tesla disclosed in a call with analysts that FSD adoption reached nearly 1.1 million paid customers in Q4, indicating a growing acceptance of the technology globally, despite ongoing regulatory scrutiny.
- Mileage Data: Tesla reported that users of its FSD technology have driven over 8 billion miles, showcasing the extensive real-world application of the technology, although it still requires active supervision from drivers.
- Safety Controversies: While Tesla claims that FSD reduces collision risks, achieving one major collision every 5.3 million miles, the technology is under investigation by the National Highway Traffic Safety Administration for allegedly breaching traffic laws.
- Comparison with Waymo: Waymo operates a fleet of over 3,000 fully autonomous vehicles that have cumulatively covered over 127 million miles, highlighting its lead in fully autonomous driving technology, which Tesla still needs to catch up on.
See More
Tesla's Capital Expenditure Plans Under Scrutiny
- Insufficient Capital Expenditure: Tesla's capital expenditures in 2025 were $8.5 billion, down from $11.3 billion in 2024 and $8.9 billion in 2023, indicating a cautious spending approach that may hinder future growth potential given its market cap exceeding $1.5 trillion.
- Future Spending Expectations: Although Tesla anticipates capital expenditures exceeding $20 billion in 2026, this figure remains inadequate in the context of its massive market capitalization and will be spread thin across multiple projects, potentially leading to misallocation of resources and impacting execution efficiency.
- New Project Advancements: The company plans to invest in six factories, including battery cell production and the CyberCab project, while also expanding its AI compute infrastructure and existing factory capacities; however, these ambitious investments face the risk of being underfunded due to resource dispersion.
- Poor Market Performance: Despite CEO Elon Musk's optimistic outlook, including the launch of a Cybercab priced below $30,000 before 2027, Tesla's stock has fallen over 8% year-to-date, reflecting market concerns regarding its financial performance.
See More
Robinhood Investors Favor Blue-Chip Stocks
- Investor Preferences: The ten most owned stocks on Robinhood include blue-chip stocks like Amazon, Apple, and Alphabet, indicating that investors are still focused on high-growth tech plays, even as they avoid more speculative stocks.
- Google's AI Potential: Google's Gemini generative AI platform is rapidly growing, with analysts expecting revenue and EPS to grow at CAGRs of 15% and 12% from 2025 to 2028, highlighting its strong potential in the digital advertising and cloud infrastructure markets.
- Amazon's Market Advantage: As the world's largest e-commerce and cloud infrastructure company, Amazon leverages AWS profits to expand its retail business, with analysts projecting revenue and EPS growth at CAGRs of 12% and 18% from 2025 to 2028, indicating robust future growth.
- Investment Recommendation: Analysts view both Alphabet and Amazon as evergreen stocks worth investing in, and Robinhood investors' choices reflect confidence in these stocks, especially amid current market volatility, showcasing their long-term investment value.
See More
Robinhood Investors Favor Alphabet and Amazon Stocks
- Investor Preference: On the Robinhood platform, Alphabet and Amazon are the most favored stocks, each receiving 58 buy ratings, indicating strong investor confidence and reflecting market recognition of their long-term growth potential.
- Alphabet's Diversification: With a robust ecosystem that includes a search engine, cloud services, and a generative AI platform, Alphabet is expected to grow its revenue and EPS at CAGRs of 15% and 12% from 2025 to 2028, demonstrating its ongoing expansion capabilities in the digital advertising and cloud markets.
- Amazon's Market Leadership: As the world's largest e-commerce and cloud infrastructure company, Amazon's AWS business supports its retail operations, with projected revenue and EPS growth rates of 12% and 18% from 2025 to 2028, showcasing its potential in the rapidly growing AI market.
- Investment Value: Despite market volatility, analysts still view Alphabet and Amazon as evergreen stocks worth investing in, indicating that Robinhood investors are leaning towards stable blue-chip stocks rather than more speculative ones.
See More
