Tesla Stock (NASDAQ:TSLA) has been in the spotlight after the electric vehicle giant reported its worst quarterly deliveries in over two years. The company, based in Austin, Texas, delivered just 336,681 electric vehicles in the first quarter, falling short of analysts’ expectations, which forecasted 365,000 deliveries. This significant miss has raised concerns among investors, with some questioning whether it’s time to sell or if the stock presents a buying opportunity.

Tesla’s Disappointing Q1 Deliveries and Stock Performance

Tesla’s first-quarter deliveries reflect a 13% year-over-year decline, a worrying trend for a company that had been on a growth trajectory. Despite deep discounts, zero financing options, and other incentives, Tesla struggled to meet analyst expectations. The results were seen as a blow to the company’s reputation, especially with CEO Elon Musk’s ongoing political involvement. Wedbush analyst Dan Ives described the delivery report as “a disaster on every metric,” emphasizing the negative impact of Musk’s polarizing actions on Tesla’s public image.

At the time of writing, Tesla stock is down nearly 36% from its year-to-date high, further fuelling the debate about whether the stock is still a worthwhile investment. While the sharp decline in deliveries is concerning, many analysts believe the drop may be temporary, and that Tesla’s long-term prospects remain strong.

Is Tesla Stock Still a Good Long-Term Investment?

Despite the short-term challenges, Wall Street analysts remain optimistic about Tesla’s future, particularly its position in the electric vehicle (EV) market and the potential of its advanced technologies. Gene Munster, a senior executive at Deepwater, sees significant upside in Tesla stock driven by innovations like Optimus, Tesla’s humanoid robot, and its plans for robotaxis. Munster believes these developments are the future of the company and could eventually lead to a major recovery in Tesla stock.

For long-term investors, the key might be looking beyond the current difficulties. While Tesla may face short-term hurdles, its long-term prospects could improve dramatically if its ambitious projects in artificial intelligence (AI) and autonomous driving succeed.

Tesla’s Potential Revenue Growth in 2026

Gene Munster projects that Tesla will struggle to grow its revenue this year but remains confident in the company’s long-term growth potential. He believes that by 2026, Tesla’s revenue could accelerate at a 35% growth rate, a significant jump from its current performance. This projection is based on the assumption that Tesla’s cutting-edge technologies, including its AI-powered Optimus robot and self-driving vehicles, will drive demand and revenue growth in the coming years.

Musk’s political involvement is also seen as something the market will eventually come to terms with, removing a major overhang on the stock. As the market adjusts to these political factors, Tesla’s stock could be free to rally, with analysts viewing the current dip as a temporary setback.

Should You Buy or Sell Tesla Stock?

Given the challenges Tesla faced in Q1, including disappointing delivery numbers and concerns about Musk’s political stances, the decision to buy or sell Tesla stock depends on your investment strategy. Short-term investors might want to wait until Tesla shows signs of a rebound, but long-term investors could view the current dip as a buying opportunity.

Tesla’s innovative AI and robotaxi projects could play a major role in the company’s future, and those willing to hold through the volatility might see substantial gains in the next few years. Analysts remain confident in Tesla’s long-term growth, with a consensus “Hold” rating and a target price of $331, suggesting potential upside of nearly 17%.

Conclusion

Tesla Stock (TSLA) is facing significant short-term challenges, but the company’s long-term prospects remain strong. Innovations in AI and autonomous vehicles could propel the stock back to growth, making it an attractive option for investors with a long-term outlook. If you believe in the company’s future, now could be a great time to buy the dip, but for those focused on short-term gains, caution may be warranted.

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