"Tesla's selloff this year has been driven first and foremost by a sharp collapse in profitability. In fiscal year 2025, operating income fell 38.45% to $4.355 billion, and net income dropped 46.79% to $3.794 billion, as higher R&D spending weighed on margins."
"JPMorgan analyst Ryan Brinkman reiterated an Underweight rating, warning the stock could drop 60% due to weakening sales, shrinking profits, and record-high inventory levels. Tesla's full-year vehicle deliveries declined 9%, and automotive revenue fell 10% in 2025, making the selloff company-specific rather than macro-driven."
"The reason 23 of 48 analysts rate Tesla a Buy or Strong Buy, while only 8 rate it a Sell or Strong Sell, comes down to what's coming. Management has guided for Cybercab volume production starting in H1 2026, Tesla Semi volume production in 2026, and robotaxi expansion to Dallas, Houston, Phoenix, Miami, Orlando, Tampa, and Las Vegas in H1 2026."
"The energy business is a genuine bright spot. Q4 2025 energy revenue grew 25% year-over-year to $3.837 billion with record 14.2 GWh deployments, generating approximately $12.8 billion in revenue in 2025."
Tesla's stock is currently trading at $340.27, with a Wall Street analyst price target of $416.15, indicating a potential 22% upside. The stock has declined 21.55% year-to-date due to a significant drop in profitability, with operating income and net income falling sharply in fiscal year 2025. Analysts remain optimistic, with 23 out of 48 rating it a Buy or Strong Buy, citing upcoming catalysts like Cybercab and Tesla Semi production. The energy sector also showed growth, contributing positively to revenue.
Read at 24/7 Wall St.
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