This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.
At the start of this year, Tesla (NASDAQ: TSLA) had a share price of $428, but as CEO Elon Musk spent more and more time working for the Trump administration running the Department of Government Efficiency (DOGE) and less time at his automotive company, Tesla's stock began faltering.
It's regained some momentum since Musk left Washington and returned his attention to Tesla, but the EV stock is still down about 20% this year, with a price per share of $325 as of June 16.
The recent pullback likely has some investors wondering whether now is a good time to buy Tesla. Here's a quick comparison of the company's pros and cons -- and why it's probably best to hold off on buying the stock right now.
Pros: Robotics and AVs could be huge
Musk often sets lofty goals for his companies that can sometimes seem (or are) outlandish. While Tesla can often miss deadlines for launches, there's no denying the company has succeeded in the electric vehicle market when most were saying it would fail.
That's why when Musk says Tesla's future is in robotics and autonomous vehicles, you should probably take him seriously. And there's plenty of money to be made from both.
Analysts from Morgan Stanley believe the humanoid robot market could be worth $5 trillion by 2035. Musk believes Tesla could grab 10% market share, and it's well on its way toward being a key player, with the goal of producing 5,000 of its Optimus bots this year and 50,000 next year.
Will it miss that goal? Probably. But the deadline isn't the point; it's that Tesla is moving steadily toward its robotics future.
This leads us to autonomous vehicles (AVs). Tesla was supposed to launch its Robotaxi service in Austin, Texas, this month, only to delay the launch. While it's easy to dismiss this as another Tesla deadline blunder, the bigger picture is that Tesla wants to both build its own autonomous vehicles and allow Tesla owners to rent out their vehicles for AV services.
Tesla is betting that its EVs will be able to tap into this massive $2 trillion (by 2030). While it's behind some competitors, namely Alphabet's Waymo, it's not a ridiculous thought that the leading EV company in the U.S. could carve out a niche in the still-nascent AV market as well.
Cons: Falling vehicle sales, unproven markets, and lack of focus
Despite Tesla's potential, serious concerns remain. First, Tesla is stumbling when it comes to its core business: selling electric vehicles. Automotive revenue tumbled 20% in the first quarter of 2025, and net income plunged 71% to just $0.12 per share.
The most likely reason was the significant brand damage done when Musk took a position at DOGE and aligning himself with some ideas that didn't sit well with existing and potential customers. It's difficult to predict if Tesla can rebuild its brand or how long it might take. That's obviously not good for sales or its stock price.
Additionally, its tarnished brand has occurred at a time when sales of EVs are stalling in the U.S. amid tariff concerns, rising prices, and a lack of EV charging infrastructure. What's more, rising EV competition abroad is chipping away at Tesla's dominance in foreign electric vehicle sales. Competitors like China-based BYD are outpacing Tesla in multiple markets, especially China.
If all of that weren't enough, Tesla betting its future on robotics and AVs is a bit of a gamble. These are two largely unproven markets, and there's no guarantee that even if Tesla succeeds in building the right technology, demand for its humanoid bots or self-driving cars will be there.
The verdict: Take a wait-and-see approach
If you're on the fence about buying Tesla, I think it's better to wait to see how the company's autonomous vehicle plans and robotics opportunities unfold. What's more, the Tesla brand needs some polishing, and Musk needs to prove he can focus on his company rather than politics.
Vehicle sales need to rebound, net income needs to grow, and Musk has to show he can stay focused on one thing at time before I'd feel comfortable buying Tesla stock right now. That doesn't mean it won't succeed at its AV and robotics ambitions, but the company has a lot to prove at the moment.
This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.
