"A rally that began in early summer has pushed the stock into the green on the year, but the AI-induced sell-off that began in late October and carried deep into November tempered Tesla's performance this fall. Overall this year, the stock is up 25.29 in 2025%. When the company reported Q3 earnings on Oct. 22, 2025, it announced quarterly revenue of $28.1 billion, up 12% year-over-year (YoY). However, earnings of 50 cents per share missed analysts' estimates of 54 cents per share."
"And while the stock may not be ready to shift gears from reverse to forward, I do think that a worsening of its latest drawdown could prove a significant buying opportunity, given the chance its drivers could pay off at some point over the medium term. However, with EV competition mounting and a Jeff Bezos-backed startup entering the scene, Tesla's outlook remains clouded."
Tesla shares experienced short-term declines after earlier gains, entering 2025 up roughly 25%. A summer rally was offset by an AI-driven sell-off from late October into November. Q3 revenue rose 12% year-over-year to $28.1 billion, but earnings per share of $0.50 missed estimates and net income fell 37% to $1.37 billion. The stock has historically endured sharp crashes and could present a medium-term buying opportunity if recovery drivers materialize. Market sentiment is polarized with strong bulls and large bears. Mounting EV competition and a Jeff Bezos-backed startup add uncertainty, while Musk-related hype is fading.
Read at 24/7 Wall St.
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