After finishing 2024 with a meteoric rise in its share price, Tesla (TSLA) has been sliding since the start of the new year. The company reported earnings on Jan. 29, and the stock has declined by as much as 15% since. So far, in 2025, the stock has generated a negative return of 12% (as of market close on Feb. 14).
While it is true that sales in Tesla’s core electric vehicle (EV) segment are decelerating, I think there is a more subtle reason for the sell-off. I’m going to explore what I see as the root of the shares’ decline and make the case for why now is a good opportunity to buy the dip.
This post originally appeared at The Motley Fool.