Tesla Stock Analysis: Bull and Bear Cases Amid Market Volatility

Tesla (TSLA -1.39%) remains one of the most compelling growth stories in the market, with shares skyrocketing over 2,000% in the past decade. A $1,000 investment a decade ago WOULD now be worth approximately $21,000. Yet 2025 has brought a stark reversal, with the stock down 14% even as broader indices post double-digit gains.

The EV pioneer now trades 29% below its all-time high, forcing investors to reassess its long-term potential. Tesla's margins—once a sore point—have improved, but its valuation hinges on ambitious bets like AI-driven robotaxis. The company recently launched supervised trials in Austin, Texas, with plans to expand globally if regulatory and technical hurdles are cleared.

Elon Musk’s vision positions Tesla as more than an automaker: it’s a tech disruptor leveraging AI for full self-driving capabilities. Success in autonomous rides could redefine its economic model, but execution risks loom large. Market sentiment remains divided between those betting on Tesla’s innovation engine and skeptics questioning its premium valuation.