Is Now the Best Time To Buy Tesla Stock?

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Let’s get one thing clear up front — if anyone tells you they know the direction of Tesla’s stock in the next few days or months, they’re wrong. Short-term price movements of stocks are never predictable, and this is particularly true in the case of Tesla.

While the stock is down over 38% in 2025 alone, it’s still up 35% over the past year and 510% over the past five years. However, the stock is embroiled in even more controversy than ever, thanks to its mercurial CEO, Elon Musk, whose rising political power in the Trump Administration has worked both for and against the stock over the past five months.

The bottom line is there are strong arguments both for and against Tesla stock over the intermediate and long-term. But as an individual investor, you’ll have to make your own decisions as to whether you believe the bull case or the bear case. Here’s a look at both sides.

Bull Case for Tesla

The bull case for Tesla hinges on its transforming itself from the simple car company most consumers are familiar with today into one of the most high-tech, innovative companies in existence. Musk himself has said that the company’s future hinges on its success in artificial intelligence, robotaxis and autonomous vehicles, not the current Tesla vehicle lineup.

That’s the tune that Cathie Wood, the well-known CEO of Ark Investments, is singing as well. As she told Bloomberg on March 24, she sees Tesla stock reaching $2,600 per share in just five years. 

Bear Case for Tesla

The bear case is currently the popular model on Wall Street. It seems as if Tesla is in the middle of a perfect storm, with deliveries falling, political sentiment largely turning against Musk and his company, and tariffs, according to the CEO himself, about to have a significant impact.

Analysts are falling over themselves, cutting estimates and reducing price targets, and the overall market is in a tariff tantrum. In short, bearish analysts suggest investors shouldn’t go anywhere near the stock at present.

What Should Investors Do?

You should only own shares of Tesla if you are comfortable with holding a volatile stock. Blue-chip stocks can be easier to value because they have relatively predictable earnings streams and cash flows, but it’s hard to even define what industry Tesla is really in.

Is it an auto company, which typically has a low P/E multiple, or is it really a software/technology company, innovating and changing the world in the areas of artificial intelligence, autonomous vehicles and more? Will consumers go back to viewing Musk as a high-tech visionary, or is his foray into politics — and his seeming lack of attention to Tesla — more likely to define how he is seen? These types of questions are not the kinds that normally afflict companies in the S&P 500, making Tesla a special case. 

If you’re considering picking up shares of Tesla, you’ll have to ask yourself which scenario you believe. Will the company get its act together in terms of deliveries and the development of its AI and autonomous vehicle divisions, including the robotaxi? And over a shorter time frame, will the market get over its tariff tantrum?

In either of these scenarios, the stock could be in for a sharp reversal. But if you believe the bearish analysts, who suggest that Tesla’s deliveries will continue to slide and that its pie-in-the-sky ambitions will never come to fruition, then further downside could be ahead. This is definitely a scenario in which you should speak with a financial advisor about your investment objectives and risk tolerance. 

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