Tesla (NASDAQ:TSLA) has faced significant volatility, with its stock down nearly 50% from its all-time high. While some investors see this as a buying opportunity, others remain cautious due to the company’s recent struggles. One notable investor, Rep. Marjorie Taylor Greene, has been accumulating TSLA shares, sparking debate over whether Tesla stock is poised for a rebound. But does her purchase signal a turning point, or is Tesla stock still too risky?

Marjorie Taylor Greene Buys Tesla Stock

According to recent filings, Marjorie Taylor Greene purchased between $1,001 and $15,000 worth of Tesla shares on March 7, just days before former President Donald Trump met with Tesla CEO Elon Musk at the White House.

During their meeting, Trump showed support for Musk by purchasing a Tesla vehicle and pledging to crack down on vandalism against the company’s cars, labeling such acts as “domestic terrorism.” Despite this political backing, Tesla’s stock has continued to struggle, raising questions about its long-term outlook.

Is Tesla Stock Undervalued?

While TSLA has seen a sharp decline, it remains one of the most expensive stocks in the auto sector. Currently, the company trades at 121 times trailing earnings and nearly 98 times forward earnings, making it difficult to argue that the stock is truly undervalued.

Tesla also reported its first-ever annual decline in sales in 2024, facing increased competition in key markets such as China, Europe, Australia, and New Zealand. U.S. sales have also been disappointing, with an 11% drop in vehicle registrations in January.

Some investors believe that Tesla’s decline is simply a reversion to the mean, rather than a true buying opportunity. Historically, Wall Street has assigned Tesla a premium valuation, but with slowing growth and CEO Elon Musk’s attention divided among multiple ventures, investor sentiment has cooled.

What Do Analysts Predict for Tesla Stock?

Despite its recent struggles, Tesla still has a bullish outlook among some analysts. The average price target for TSLA sits at $347.89, representing a potential 45% upside from current levels. However, out of 40 analysts covering the stock, only 17 have issued “Buy” ratings, signaling a lack of strong conviction.

Should You Buy Tesla Stock in 2025?

While Marjorie Taylor Greene’s investment in Tesla stock has drawn attention, it is unlikely to be a major market-moving event. Her purchase amount is relatively small compared to her overall net worth, and it appears more symbolic than strategic.

Tesla’s future remains uncertain, with factors such as slowing sales, global competition, and Musk’s leadership challenges weighing on investor sentiment. While some analysts see upside potential, the stock’s high valuation and recent struggles suggest that caution may be warranted.

For those considering Tesla as an investment, it may be best to wait for clearer signs of a turnaround before buying the dip.

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