Tesla Stock Is Falling Today -- Is This a Buying Opportunity?
Tesla's stock is down 2.5% today, following reports of declining sales in Europe, with a 36% drop in April and a 37% decrease in Q1. The company's valuation is under pressure, and while new ventures like robotaxi services and Optimus robots are anticipated to drive growth, challenges remain. Revenues from the auto business fell 20% year over year in Q1, raising concerns about the stock's risk-reward profile.
Tesla (TSLA -1.46%) stock is moving lower following new European sales tracking data. The electric vehicle (EV) company's share price was down 2.5% as of 2 p.m. ET. Meanwhile, the S&P 500 was down 0.2%, and the Nasdaq Composite was down 0.3%.
Tesla's valuation is falling today in response to a Reuters report suggesting that the company's sales struggles are continuing in Europe. According to tracking from the Spanish Association of Automobile and Truck Manufacturers, Tesla's sales in that country sank 36% year over year in April after declining 17% across the first four months of the year.
This update followed a separate report from Reuters last Friday stating that the company had seen vehicle sales in Europe fall roughly 37% year over year in the first quarter despite a 28% increase for EV sales overall in the market. With today's pullback, Tesla stock is down roughly 31% in 2025.
Image source: Tesla.
Is Tesla stock a buy right now?
With Tesla's core auto business under pressure, attention has turned to the rollout of the company's robotaxi service and its Optimus humanoid robots as the key near-term bullish catalysts for the stock. While these new ventures could eventually turn into powerful growth drivers, it will likely take a while for the businesses to scale up.
Tesla's robotaxi services are scheduled to launch in Austin, Texas next month, and it's possible that the stock could get a substantial boost if the rollout goes smoothly and garners favorable reviews. Meanwhile, the Optimus robots had been scheduled to enter production at significant scale later this year -- but reduced access to rare-earth minerals could delay manufacturing. With revenues for the auto business declining 20% year over year in the first quarter and indications of continued headwinds, the risk-reward profile for Tesla stock doesn't look appealing enough yet.
