The best stocks to buy have often been unpopular stocks as investors end up overlooking hidden value. Tesla (NASDAQ:TSLA) definitely fits into the unpopular category right now, with its 2025 first-quarter vehicle delivery numbers coming in far worse than expected.
The shares tumbled almost 10% in aftermarket trading on the news, continuing its downward streak that started after reaching a peak in mid-December. In total, Tesla shares have fallen close to 50% in the last four months or so. But is the situation really as dire as investors think? And could we actually be looking at a phenomenal long-term buying opportunity?
A closer look at deliveries
Elon Musk’s new involvement in US and European politics has sparked a lot of controversy. With politics becoming more polarised in recent years, most consumer-facing CEOs have stayed politically neutral to avoid potentially alienating part of their customer base. And given there are now ongoing protests outside Tesla dealerships in the US, Musk is seemingly learning this first-hand.
For reference, the average consensus among analysts was 372,410 vehicles. The actual figure came in significantly lower at 336,681 – the weakest performance since the second quarter of 2022.
| Year | 2022 | 2023 | 2024 | 2025 |
| Q1 Deliveries (thousands) | 310 | 422.9 | 386.8 | 336.7 |
| Q2 Deliveries (thousands) | 254.7 | 466.1 | 444 | – |
| Q3 Deliveries (thousands) | 343.8 | 435.1 | 462.9 | – |
| Q4 Deliveries (thousands) | 405.3 | 484.5 | 495.6 | – |
However, politics aside, there may be other more impactful reasons why Tesla deliveries suffered in this latest quarter. The company recently launched the long-anticipated refresh to its Model Y SUV and, throughout 2024, management promised to launch a much more affordable electric vehicle (EV) in the first half of 2025.
The anticipation of two new TVs coming to the market has likely dented demand as customers wait to see what’s coming. Looking towards Europe, the business is experiencing some of the worst slowdowns in places like the Netherlands, Sweden and Denmark.
Is this entirely because of political involvement? I’m not convinced. Instead, I think it’s far more likely that competition within the EV space has increased significantly in recent years. In particular, Volkswagen now offers a far more diverse portfolio of EVs across its brands (including Audi, Skoda, Cupra, and VW) than Tesla.
Time to buy?
Seeing a stock lose half its value over one bad quarter seems a bit overblown, especially since the company is far from doomed. Instead, this looks more like a valuation correction. After all, the stock doubled between October and December last year, seemingly due to unrealistic expectations.
Looking out to the future, Tesla has a lot of promising developments on the horizon. In particular, its investments in AI & robotics are building up an impressive patent and technology portfolio that could set it apart from its rivals. Later this year, its self-driving car technology will hit the roads as the first critical milestone for robotaxis. And in 2026, its Optimus robots will also be entering the market, diversifying the revenue stream beyond the world of EVs.
So is the recent volatility an opportunity to consider the shares? Personally, I think it’s worth waiting a little bit to see the full extent of Tesla’s financial situation and strategy moving forward. Luckily, with the company reporting earnings later this month, investors won’t have to wait long.
This post was originally published on Motley Fool
