Tesla(US:TSLA) The Motley Fool·2025-04-21 19:02Core Viewpoint - Tesla's stock has experienced a significant decline due to a major delay in the production plans for its lower-priced Model Y, which is now expected to launch later than initially planned, impacting the company's sales and overall performance [1][2][4]. Company-Specific News - Tesla's U.S. debut of the bare-bones version of the Model Y has been postponed from this quarter to at least the third quarter of 2025, with potential delays extending into 2026 [2]. - The stock has dropped 45% in 2025's trading, reflecting investor concerns over the delay and its implications for sales [2]. Financial Performance - Tesla is set to release its first-quarter results, with preliminary delivery figures indicating significant declines in sales and earnings for the period [3]. - The postponement of the new mass-market Model Y is likely to delay potential sales rebounds, which could significantly impact the company's overall performance for the year [4]. Valuation Concerns - Tesla's stock is currently trading at over 88 times this year's expected earnings and approximately 6.7 times expected revenue, despite indications of further sales declines [6]. - Given the challenging near-term outlook for its core EV business, the stock appears expensive at current prices, suggesting a cautious approach for potential investors [6].