Should You Buy the Post-Earnings Selloff in Tesla Stock?

Core Insights - Tesla experienced its first-ever revenue decline in 2025, leading to a significant sell-off of its shares, which are down approximately 14% from their 52-week high [1] - The company has projected that capital expenditures for its robotaxi and humanoid robot initiatives will exceed $20 billion this year, more than doubling year-over-year [1][3] - Elon Musk announced the cessation of Model S and Model X production to focus on humanoid robots, indicating a shift from traditional vehicle sales to unproven autonomous technology [4] Financial Performance - In the fourth quarter, Tesla reported a 16% decline in vehicle deliveries year-over-year, raising concerns about the performance of its core EV business despite a headline beat [5] - The company's premium valuation, exceeding 250 times forward earnings, is considered precarious given the speculative nature of its AI pivot [6] Market Sentiment - Analysts express caution regarding Tesla shares, with the consensus rating sitting at "Hold" and a mean target price of approximately $401, suggesting a potential downside of about 4% [8][7] - The post-earnings decline has pushed Tesla's stock below its 100-day moving average, indicating sustained bearish momentum in the near term [6]