EV maker Tesla (TSLA) is on the radar of “bargain hunting” investors after its shocking start to 2025.
The group, which yesterday reported a 71% plunge in profits, has seen its stock reverse 42% in the last three months. That has been largely due to increased competition, trade tariff uncertainty and chief executive Elon Musk splitting his time between the day job of running the business and being a key part of President Trump’s administration.
DIY Investors Remain Fans
Musk’s decision to increase his commitment to Tesla at the expense of the Oval Office as well as the earnings results perhaps drawing a line in the sand regarding its 2025 troubles may have helped its stock price climb over 6% in pre-market trading today.
But, according to one UK-based analyst, Tesla is still very much a buying opportunity for investors.
Dan Coatsworth, investment analyst at AJ Bell, said that three times as many DIY (Do It Yourself) investors on its platform had bought Tesla shares than sold them over the past month.
“Tesla’s first-quarter delivery and production numbers on April 2 were as ugly as its Cybertruck design. That meant expectations were rock-bottom in the run-up to its financial results and it’s why the shares didn’t tank upon release of the Q1 earnings,” Coatsworth said. “Tesla’s brand has gone from pioneer to toxic.”
Buying the Dip
Despite this, he said many investors have now taken the view that Tesla’s significant share price decline has gone too far and they are buying the dip, hoping for a bounce-back.
“While Tesla’s shares are down approximately 50% since mid-December 2024, they are still ahead by nearly 400% over the past five years,” he added. “It could be a once-in-a-lifetime chance to pick up shares in a previous stock market darling on the cheap. It’s clear the long-term direction of travel for four-wheeled transportation is likely to be electric.”
Is TSLA a Good Stock to Buy Now?
On TipRanks, TSLA has a Hold consensus rating based on 16 Buy, 11 Hold and 12 Sell ratings. Its highest price target is $465. TSLA stock’s consensus price target is $290.62 implying an 22.12% upside.
