Available data shows that the sales of Tesla cars declined during the 1H2025. When compared with the same period from last year, the volumes are down by 13%.
Meanwhile, the Tesla stock is up by 68% over the past year and is only down by 14% this year. So, the Tesla stock is still green when we look at it from a bigger timeframe.
In just the last 5 years, the Tesla stock has gained almost 134% which is quite impressive. But this also raises the question of why the Tesla stock price is soaring while the sales are declining.
Looking ahead, experts believe that the profitability and sales will decline as the US tax credits will end. On top of that, the Tesla company will also face more fierce market competition as there are new players in the market.
But despite the challenges, experts believe there's a lot to like about the Tesla stock. One reason why the sales declined was due to the temporary closure of the production line for retooling purposes. But since the issues are now resolved, there's a good chance the sales will grow.
Tesla's revenue from energy storage and generation also shows a 7% y/y decline in the last quarter. But the long-term trend is still bullish in these businesses, which means things are still looking good for Tesla.
According to the company, the volume production of self-driving taxis and trucks will also happen in the year 2026. More importantly, the company is also running trials for self-driving in selected US cities.
The bottom line is that the core business of Tesla is expected to rebound during the 2H2025. On top of that, other business avenues of Tesla are also promising, which will also help Tesla's bottom line.
So, while things are looking tough for Tesla, the long-term outlook is still bullish for the stock. Maybe that's a key reason why the Tesla stock has managed to maintain a bullish tone in the long term.