Tesla Stock Is Up 219% Since 2020. Can Investors Still Make Money With This Texas-Based Company?

Core Insights - Tesla is currently valued at $1.4 trillion, with shares having tripled since 2020, but faces declining sales and increasing competition in the EV market [1][3] - The company's market share in the U.S. has dropped significantly, falling below 40% for the first time since 2017, indicating a loss of its early-mover advantage [5] - Despite challenges, Tesla's robotaxi division presents a potential growth opportunity, with estimates suggesting it could be worth over $1 trillion [1][7] Sales and Earnings Outlook - Analysts predict a 4% decline in Tesla's sales in 2025, with earnings potentially down by nearly 30% [3] - The company is expected to face another challenging year in 2026, particularly due to the expiration of federal tax credits that previously incentivized EV purchases [5] Competitive Landscape - Tesla's competition is intensifying, with new entrants like Rivian planning to launch models priced under $50,000, which could pressure Tesla's sales, especially since over 90% of its revenue comes from the Model Y and Model 3 [6] - The lack of new major model introductions in nearly five years has contributed to Tesla's declining market share [4] Technological and Capital Advantages - Tesla maintains significant technological and capital advantages over competitors, but the near-term outlook for raw EV sales appears bleak [7]