Tesla Is Plummeting Again -- Is It Time to Buy the Stock?

On the heels of huge gains yesterday, Tesla (NASDAQ: TSLA) stock is seeing big sell-offs in Thursday's trading. The electric-vehicle (EV) company's share price was down 9.9% as of 1:15 p.m. ET amid the backdrop of a 5.3% decline for the S&P 500 (SNPINDEX: ^GSPC) and a 6.1% decline for the Nasdaq Composite (NASDAQINDEX: ^IXIC).While President Donald Trump issued a 90-day suspension of reciprocal tariffs for other countries yesterday, he announced that the import tax rate on products from China would be raised from 104% to 125%. The previous tariff rate was already extremely high, and the move to raise import taxes on China even higher is highlighting rapidly deteriorating relations with the U.S. and the potential for conditions to continue worsening. As of this writing, Tesla stock is now down 39% across 2025's trading and 48% from its valuation peak.Despite a big valuation pullback, Tesla stock is still trading at approximately 95.5 times this year's expected earnings and 7.4 times this year's expected sales. Given relatively weak performance for the business recently and concerns that the company's brand may have been significantly damaged by CEO Elon Musk's foray into politics, the company's valuation multiples suggest that the stock is still very risky.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool