After a tough start to the year, Tesla shares appear to be back on track. Time to buy?
Tesla (NASDAQ: TSLA) shares have been volatile in 2025, but this week brought signs of recovery. The stock gained ground on Wednesday (3 September) and into early Thursday trading after the company reported strong sales momentum in key international markets.
The $1trn automotive and robotics giant delivered 83,192 vehicles in August — a 22.5% jump from July and its best wholesale month of the year. A particular highlight was Turkey, where sales of the Model Y surged to 8,730 units, an 86% increase from the prior month.
But the picture was less rosy elsewhere. Tesla continues to see softer sales in India and ongoing declines across several European markets. UK sales are down 5.5% so far in 2025. Meanwhile, competition from Chinese rival BYD is intensifying.Â
In Europe, BYD reported 13,503 new registrations during July, a year-on-year rise of 225% and almost six times higher than Teslaâs comparable growth rate.
Still, the company continues to grab headlines for more than just its cars.
Positive developments
Salesforce CEO Marc Benioff recently praised Teslaâs robotics programme after visiting its factory, highlighting the Optimus humanoid robot project. Elon Musk has said the firm expects to sell significant quantities of artificial intelligence (AI)-trained robots in 2026.Â
In addition, Tesla has finally launched its long-awaited robotaxi app on the Apple iStore, opening the door to potential new revenue streams in mobility services.
The broader economic backdrop might also be bullish. US job market data has weakened, with unemployment ticking higher. This has fuelled speculation that the Federal Reserve may be forced to cut interest rates, which could lift growth stocks like Tesla.Â
On a lighter note, Musk reportedly failed to secure an invite to a White House tech meeting, suggesting he’s at least back to focusing on the company rather than political distractions.
Financials
Tesla remains a paradox. With a $1trn market-cap, it’s the worldâs largest automotive business by value, yet it also looks the most expensive. The forward price-to-earnings (P/E) ratio sits at an extraordinary 197. By comparison, many established carmakers trade on single-digit multiples.
Revenue’s fallen 2.73% year on year and earnings have slid 51.5% — broadly in line with the industryâs global slowdown. Only a handful of peers, such as Ferrari and Suzuki, have managed to post positive earnings growth recently.Â
Margins remain thin and profitability is modest, but Tesla does benefit from a solid balance sheet and strong cash flow, which gives it resilience in turbulent times.
Is Tesla a buy for me?
Wall Street remains divided. Among 38 analysts, the average price target for Tesla shares is $313.91, with a bullish high estimate of $500 and a bearish low of $115.
That spread highlights just how polarising the stock remains â and understandably so. Any small slip â a robotaxi mishap or lack of interest in Optimus â could send the share price tumbling again.
But overall, I think the mix of strong international demand, progress in robotics and a possible rate cut make Tesla shares still worth considering at todayâs levels.
The price remains down 10% since the start of the year, so any investor who believes in Muskâs vision may see this as an opportunity to pick up some shares before the next rally.
Personally, I don’t plan to buy just yet — but I’ll keep a close eye on those robots.
The post After a tough start to the year, Tesla shares appear to be back on track. Time to buy? appeared first on The Motley Fool UK.
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Mark Hartley has no position in any of the shares mentioned. The Motley Fool UK has recommended Apple, Salesforce, and Tesla. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
