As Tesla Launches an Updated Model Y, Should You Buy, Sell, or Hold TSLA Stock?

Core Insights - Tesla has launched more affordable versions of its Model Y SUV and Model 3 sedan, priced at $39,990 and $36,990 respectively, amid rising competition and the loss of federal EV tax credits [1] - The new models aim to stabilize sales as the company faces challenges in Europe and China [1] Financial Performance - In Q2 of fiscal 2025, Tesla's automotive revenues fell 16% year-over-year to $16.66 billion, slightly exceeding analysts' expectations of $16.53 billion [7] - Total revenues for the quarter decreased 12% from the previous year to $22.5 billion, missing the anticipated $22.74 billion [7] - Vehicle deliveries dropped 13% year-over-year to 384,122, below the expected 397,843 vehicles [8] Production and Market Position - Total production numbers for Q2 remained flat year-over-year at 410,244 [8] - The decline in deliveries was primarily due to a 12% year-over-year drop in Model 3/Y deliveries [8] - Tesla's market capitalization stands at $1.45 trillion, indicating its significant presence in the auto and clean-energy sectors [3] Stock Performance - TSLA stock has gained 96% over the past 52 weeks, although it is down 12% from its 52-week high of $488.54 reached in December 2024 [4] - Year-to-date, TSLA shares have increased by 6%, underperforming the S&P 500 Index, which has gained 13% [4] - The stock is trading at a high valuation of 357.23 times forward earnings, significantly above the industry average [5]