Tesla stock at discount: A bargain or a trap? What investors must know before buying the dip!

Dubai: The closely-eyed Tesla’s stock has had a rough 2025 so far. After soaring to all-time highs in late 2024, shares have taken a beating, dropping nearly 30 per cent this year.

With headlines about falling sales, political controversies, and growing competition, many investors are wondering: is this a golden buying opportunity, or is Tesla’s best growth behind it?

If you're a new investor or even a seasoned one, deciding whether to buy Tesla stock at these lower levels is no easy task. Let’s break it down.

The recent downturn in Tesla’s stock isn’t just a fluke. A combination of factors has put pressure on the EV giant, including:

· Declining vehicle sales: Tesla’s first-ever annual drop in sales was reported in early 2025. Analysts predict a further slowdown, with Q1 deliveries potentially missing estimates.

· Political turbulence: CEO Elon Musk’s involvement in President Trump’s administration has polarized consumers. Some Tesla owners are selling their cars in protest, and Tesla showrooms have been targeted in acts of vandalism.

· Executive stock sales: Top executives and board members, including Musk’s brother Kimbal Musk, have sold millions of dollars in Tesla shares, raising concerns about internal confidence in the company.

· Competition from BYD and other EV makers: Chinese automaker BYD has surpassed Tesla in global EV sales, proving to be a formidable competitor.

Despite these challenges, many analysts and high-profile investors still see massive upside in Tesla’s future. Some key reasons why Tesla could rebound include:

· AI & Robotaxis: Cathie Wood of Ark Invest predicts Tesla stock could skyrocket to $2,600 per share in five years, driven by its autonomous vehicle fleet. Musk himself has been touting Tesla’s upcoming ‘Cybercab’ and robotaxi service as game-changers.

· Stock appears to have bottomed: After plunging from December highs, Tesla stock seems to be stabilizing, with a 25% bounce from its March lows.

· Musk is reengaging: At a recent company-wide meeting, Musk reassured employees, telling them to “hang onto your stock.” Analysts, including Dan Ives from Wedbush Securities, see this as a sign that Musk is refocusing on Tesla.

· Long-term growth story remains intact: Tesla is not just a car company. Its ventures into AI, robotics, and energy solutions could drive significant growth beyond its current EV business.

While there are reasons to be optimistic, there are also serious risks investors should consider:

· Short-term sales declines could continue: If Tesla’s Q1 earnings disappoint, the stock could take another leg down.

· Musk’s political ties could damage the brand further: Some analysts worry that Tesla has become a political symbol, which could hurt sales in key markets like China and Europe.

· Competition is heating up: BYD and other automakers are rapidly advancing their EV and battery technologies, threatening Tesla’s dominance.

Tesla’s stock is at a crossroads. If you believe in Tesla’s long-term vision of AI and autonomous driving, the current dip could be a rare buying opportunity. However, if you’re looking for stability or quick gains, the near-term risks could be too great.

For cautious investors, waiting until Tesla’s Q1 earnings report in late April may be a smart move. This will provide clearer insight into whether sales are stabilizing or if the downturn is deepening.

One thing is certain: Tesla remains one of the most exciting – and unpredictable – stocks on the market. Whether you buy now or wait, buckle up for a wild ride.