Down 14% This Year, Is Tesla Stock a Buy?

Core Viewpoint - Tesla's stock has declined approximately 14% in 2025, as the company attempts to shift investor focus from its struggling automotive sales to software and services related to autonomy and ride-hailing [1][2] Financial Performance - Tesla reported total revenue of $22.5 billion in the second quarter, a decrease of 12% year-over-year, with a gross margin of 17.2%, down from 18% a year ago [5] - The automotive gross margin fell to 17.2% from 18.5%, attributed to lower average selling prices and fewer regulatory credits [5] - Vehicle deliveries in the second quarter were 384,122, down from approximately 444,000 in the same period last year, indicating weaker demand trends [6] Strategic Outlook - CEO Elon Musk described the current phase as a "weird transition period," indicating potential challenges ahead and acknowledging the fragility of the situation [7] - Musk expressed ambition for the Robotaxi service, aiming to cover "probably half the population of the U.S. by the end of the year," contingent on regulatory approvals [8] - The company is heavily investing in autonomy, energy, and robotics, but the timelines for commercialization and profitability remain uncertain [8]