Valued at a market cap of over $900 billion, Tesla (TSLA) is a giant who has historically dominated the electric vehicle market. 

Despite its scale, however, the stock is down more than 30% in the year to date and is more than 40% off its all-time high. 

In 2025, Tesla is wrestling with slowing consumer demand, rising competition, and negative consumer sentiment due to Elon Musk’s association with the Department of Government Efficiency (DOGE). 

In recent years, Tesla has also been forced to lower vehicle prices due to sluggish demand, resulting in falling profit margins. For instance, its gross margins have narrowed from 25.6% in 2022 to 17.7% in the last 12 months, and its operating margins have fallen from 16.8% to 7.3% in this period. 

Between 2019 and 2024, Tesla increased its sales at an annual rate of 32%. Given analyst consensus estimates, its top-line growth is forecast to decelerate to less than 20% over the next five years. 

However, Tesla bulls remain optimistic about the upcoming robotaxi launch in June, which might unlock another billion-dollar revenue stream for the EV maker. 

Should You Buy Tesla Stock Before Its Robotaxi Event?

Tesla stands at a pivotal moment as it prepares for its long-promised robotaxi launch in Austin this June, following years of delays in delivering fully autonomous driving technology. The company’s partially automated driving system, currently marketed as Full Self-Driving (Supervised) in the U.S., offers sophisticated but limited capabilities requiring constant driver supervision.

The stakes for a successful launch couldn’t be higher, given Tesla’s current underperformance. 

Its vehicle deliveries fell by 13% in Q1 as it faces increasing competition and consumer backlash tied to CEO Elon Musk’s political activities and role leading the Department of Government Efficiency.

Musk has positioned fully autonomous driving as existential to Tesla’s future, repeatedly emphasizing that the company would be “virtually zero” without it. Industry experts remain skeptical. Some observers praise the system’s impressive progress but acknowledge its limitations. Critics question whether it can be safely deployed without supervision by June. 

According to a Benzinga report, investor Gary Black characterized the upcoming launch as “an experiment” rather than a true market test. Black noted Austin’s relatively relaxed autonomous vehicle regulations compared to locations where competitors like Waymo have undergone more extensive testing.

For Tesla, the robotaxi launch may represent Musk’s biggest bet yet. The big-ticket event in June could either validate his vision and revitalize investor confidence or further damage the company’s already precarious market position.

What Is the Target Price for TSLA Stock?

Out of the 41 analysts covering TSLA stock, 16 recommend “Strong Buy,” two recommend “Moderate Buy,” 13 recommend “Hold,” and 10 recommend “Strong Sell.” The average target price for TSLA stock is $283, marginally higher than the current trading price.