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Tesla (TSLA) stock rose close to 10% on Friday, April 25 on the heels of a significant announcement by President Donald Trump’s administration regarding self-driving car regulations. The initiative will drive the deployment of self-driving cars and ease the compliance burdens that have dampened industry development. Investors perceived this as a booster for Tesla’s robotaxi plans under CEO Elon Musk.
Broader market forces are at work. As the U.S. competes to pass China on AI and autonomous vehicles, firms like Tesla have the potential to gain a regulatory boost at a crucial time for world tech leadership.
About Tesla Stock
Tesla (TSLA) is the world’s electric vehicle and clean energy pioneer based in Austin, Texas, with a market cap of around $920 billion. Tesla produces and markets electric cars, as well as products for the generation and storage of energy.
At the current price near $284, Tesla stock has fallen significantly from it 52-week peak but has rebounded by more than 18% over the last five days, performing better than the S&P 500 Index ($SPX) over the period.
Valuations for Tesla continue to be higher than industry comparables. Tesla has a trailing price-earnings (P/E) ratio of 154.03x and a forward P/E ratio of 169x, reflecting a premium on expected growth. Its price-sales ratio is 9.4x, and its price-cash flow multiple is 73.57x. Tesla’s book value per share is $23.40, with a price-book multiple of 12.18x. While pricey by historical standards, investors keep pricing Tesla as the leader of the nascent markets for autonomous and AI-driven mobility.
Tesla Misses Q1 2025 Earnings
Tesla reported disappointing Q1 2025 results that set the tone for a tough beginning of the year. The company reported GAAP EPS of $0.12, lower than the expected $0.27. Revenue stood at $19.34 billion, a 9% drop on a year-over-year basis, also lower than expected.
Net income attributable to common stockholders sank 71% year over year to $409 million from $1.39 billion in the previous year. Automotive revenue fell 20% year-over-year due mainly to declining vehicle deliveries, sharp price reductions, and unfavorable foreign exchange impacts. Tesla’s GAAP gross margin remained unchanged from the previous quarter at 16.3%, although it was down from 17.4% in the prior-year period.
Operating income fell sharply to $399 million. The company blamed margin compression on falling vehicle average selling prices, the drop in Model 3 and Model Y deliveries, and higher R&D expenses related to its AI and autonomy initiatives.
Tesla did not offer Q2 2025 guidance but suggested that full-year growth was subject to macroeconomic conditions, the ramp of new vehicle production, and the pacing of Full Self-Driving rollouts.
What Analysts Expect for Tesla Stock
Based on 41 analysts in coverage, Tesla currently carries a consensus “Hold” rating. Among the ratings are 16 “Strong Buy,” two “Moderate Buy,” 13 “Hold,” and 10 “Strong Sell.” The sentiment modestly improved over the past three months, albeit cautiously due to valuation concerns and operational risks.
As of the latest update, Tesla holds a mean analyst price target of $283.14, which is virtually aligned with its current trading price. The price target range remains wide, with a high target of $465.00 and a low target of $115, highlighting considerable uncertainty among analysts regarding Tesla’s valuation trajectory.
