Is It Too Late to Buy Tesla Stock?

By Neil Patel – Dec 16, 2025 at 1:05PM ESTKey PointsTesla's current valuation does not reflect the reality of the business today. Investors who are extremely bullish on the company's robotaxi and robotics efforts will still buy the stock. These 10 Stocks Could Mint the Next Wave of Millionaires ›NASDAQ: TSLATeslaMarket Cap$1.6TToday's Changeangle-down(0.81%) $3.83Current Price$479.14Price as of December 16, 2025 at 1:47 PM ETThis top EV company's shares have climbed more than 3,000% in the past decade.Tesla (TSLA +0.81%) has its fair share of fervent supporters and its fair share of critics. But this business has taken care of its investors, thanks to the inventiveness of founder and CEO Elon Musk. In the past 10 years, shares have soared 3,070% (as of Dec. 12), absolutely trouncing the overall market. Tesla now trades not too far off its peak price from 12 months ago. Is it too late to buy this electric vehicle stock? Image source: Tesla. Tesla's valuation reflects market enthusiasm In recent years, Tesla has seen sales growth slow. And its profits have been are under pressure. Nonetheless, the stock is very expensive. It trades at a price-to-earnings ratio of 307. Based on the valuation, it's certainly too late to buy shares. The market is extremely enthusiastic about the business. ExpandNASDAQ: TSLATeslaToday's Change(0.81%) $3.83Current Price$479.14Key Data PointsMarket Cap$1.6TDay's Range$465.90 - $482.0352wk Range$214.25 - $488.54Volume2.4MAvg Vol86MGross Margin17.01% Looking out a decade from now The only investors who think it's not too late to buy the stock are those who are convinced Tesla will find remarkable success with autonomous driving and robotics. Commercializing robotaxis on a global stage will bring in high-margin revenue for the business. And if the company can scale manufacturing of its humanoid robots, the financials could get a boost over the long term. Advertisement Tesla can penetrate what it believes are massive total addressable markets. This favorable outcome, which is unpredictable and might not happen, could lift the stock.About the AuthorNeil Patel is a contributing Motley Fool stock market analyst covering consumer staples, consumer discretionary, financials, information technology, and communication services. Prior to The Motley Fool, Neil worked in corporate finance roles at JPMorgan Chase and Capital One. He also has experience working on a start-up in the cryptocurrency space. He holds a bachelor’s degree in business administration with a specialization in finance from Ohio State University.TMFNeilPatelRead NextDec 15, 2025 •By Lawrence Rothman, CFAIf You Had Invested $5,000 in Tesla Stock 1 Year Ago, Here's How Much You Would Have TodayDec 15, 2025 •By Howard SmithWhy Tesla Stock Hit an All-Time High TodayDec 15, 2025 •By John BromelsPrediction: Elon Musk Will Reveal Tesla Is Already Losing Money in Q4Dec 13, 2025 •By Parkev Tatevosian, CFAShould Investors Buy Tesla Stock Before 2026?Dec 9, 2025 •By Neil PatelShould You Buy Tesla While It's Below $500?Dec 9, 2025 •By Bram BerkowitzIf You'd Invested $3,500 in Tesla 12 Years Ago, Here's How Much You'd Have Today