Tesla (TSLA) Stock: Is the 39% Plunge a Warning or Buying Opportunity?
TLDR
Tesla is launching a free trial of its Full Self-Driving (FSD) service in China from March 17 to April 16
The company’s stock has fallen approximately 39% year-to-date in 2025
Tesla’s automotive revenue declined 6% in 2024, though its energy storage segment grew 67%
High interest rates have negatively impacted vehicle purchases and sales volume
Potential growth catalysts include autonomous driving technology, a planned lower-cost electric vehicle, and expanding energy storage business
Tesla announced a free trial of its Full Self-Driving (FSD) service in China starting March 17 and running through April 16. This limited-time offer is available to Chinese Tesla owners whose vehicles have compatible assisted-driving hardware and software, plus the latest navigation maps.
The FSD system combines driving-assistance technologies developed with generative artificial intelligence. It is designed to handle complex traffic situations that drivers encounter daily.
Tesla is working with Chinese tech giant Baidu to enhance the system’s performance in China. The company aims for a full rollout of FSD this year.
In the United States, Tesla’s FSD system does not require accurate or up-to-date navigation maps. This is because local training of the AI helps the technology drive better.
The situation differs in China. Tesla has been unable to train its system with data from its 2 million electric vehicles in the country. This limitation comes from China’s strict data laws.
Stock Price
Meanwhile, Tesla stock has seen a sharp decline in 2025. Shares have dropped about 39% year-to-date as of mid-March.
This fall follows challenging financial performance in 2024. The company’s automotive revenue decreased 6% year over year. This resulted in total revenue growth of just 1% for the year.
High interest rates have heavily affected Tesla’s automotive demand. This environment has put pressure on both sales volume and vehicle pricing.
The company’s financial metrics showed further strain. Net income dropped 53% year over year in 2024. Free cash flow declined by 18% during the same period.
According to Trader Edge on X, Tesla is finding support at the key level of $245. This price level has the highest trading volume since August 2020. If it can hold this level as support, the price could move toward $300.
After a 55% drop, $TSLA has found support at the range point of control around $245
This price level has the highest trading volume since August 2020
Can we see a run toward the key resistance level at $300?#Tesla pic.twitter.com/zOKJoBnjS3
— Trader Edge (@Pro_Trader_Edge) March 15, 2025
Not all segments of Tesla’s business are struggling. The energy generation and storage business saw strong growth, with revenue rising 67% year over year.
Growth in this segment accelerated even further in the fourth quarter. Revenue increased by 113% compared to the same period in the previous year.
Despite this strong performance, the energy segment remains relatively small. It accounts for about 10% of Tesla’s total revenue. This means weakness in the automotive division still impacts overall results.
Tesla has several potential catalysts that could help restart growth. These include further development of autonomous driving technology, plans for a lower-cost electric vehicle, and continued expansion of its energy storage business.
By this summer, Tesla plans to launch a fleet of autonomous cars as a ride-sharing service in Austin, Texas. The technology may be closer than many investors think.
The FSD software can help Tesla vehicles navigate complex situations. These include traffic circles, traffic lights, four-way stops, lane changes, merging on and off highways, stopping for pedestrians, and more.
With this technology built into every car Tesla produces, the company could quickly become a major player in autonomous ride sharing.
Tesla also plans to launch a more affordable vehicle. According to Tesla management, there is likely more than one new vehicle in Tesla’s pipeline.
Tesla Chief Financial Officer Vaibhav Taneja stated, “We are still on track to launch a more affordable model in the first half of 2025 and will continue to expand our lineup from there.”
The energy storage business could also be a meaningful catalyst in 2025. The company expects to grow energy storage production with the help of a new factory it finished late last year.
Tesla’s current stock price stands at $241.70 as of March 17, 2025. This represents a decrease of $8.28 or 3.31% for the trading day.
The post Tesla (TSLA) Stock: Is the 39% Plunge a Warning or Buying Opportunity? appeared first on CoinCentral.
Filed under: News - @ March 17, 2025 2:26 pm