Tesla is under the spotlight again, and this time, all eyes are on the upcoming Q1 earnings report dropping after the market closes on April 22, 2025. With the stock already down nearly 50% from recent highs and questions circulating about both its business performance and Elon Musk’s political involvement, investors are asking one key question: Should you buy Tesla stock before earnings?

While Tesla is working on exciting new tech like robots, artificial intelligence, and its upcoming Robotaxi service, the main part of its business, selling cars, is showing serious possible signs of trouble.

Tesla’s Sales Are Slowing Down, and Trouble Is Growing

In the first quarter of 2025, Tesla delivered 336,681 vehicles, far fewer than Wall Street expected (360,000 and 370,000). That’s a 13% drop compared to last year, which is a big deal for a company that was once growing fast.

Making things even more complicated, CEO Elon Musk’s involvement in U.S. politics — especially his controversial “Department of Government Efficiency” campaign — has caused some backlash. There have been reports of vandalism at Tesla dealerships and signs that people in Europe and Canada are starting to view the brand more negatively.

And it’s not just Tesla – the economy is struggling too. More people are falling behind on their car loans, and many Americans are cutting back on spending because of high prices and uncertain financial conditions.

Tesla’s Stock Has Dropped But Is It a Good Deal Now?

Since hitting a high after the 2024 U.S. election, Tesla’s stock has fallen by nearly 50%. That’s tough news for current investors, but it might actually be a good sign for people thinking about buying in for the long term.

Tesla’s stock price used to be very high compared to what the company was earning, but now it’s come down to a more reasonable level. Its value compared to its revenue is now closer to what you’d expect from traditional car companies like Toyota. However, Tesla is still priced higher than most carmakers. That’s mostly because investors are excited about what the company might do in the future, not just what it’s doing now.

Some of those future projects, which aren’t here yet include Robotaxi and Optimus humanoid robots on the horizon (a human-like robot still in early development).

But investors should remember: these projects aren’t making money yet, and right now, Tesla’s main business — selling electric cars — is facing some challenges.

So… should you buy Tesla stock before April 22?

Not so fast. This upcoming earnings report is shaping up to be one of Tesla’s most important in years. Right now, the company is facing:

  • A slowing electric vehicle (EV) market
  • Brand image challenges, partly due to Elon Musk’s politics
  • A shaky economy that’s making consumers pull back

Because of all this, it might be wise to wait and see what Tesla says on April 22 before making any big investing decisions. Watch the earnings call, hear what Elon Musk shares about the company’s direction, and then decide based on facts, not just hype. If you believe in Tesla’s future, like its plans for AI, Robotaxis, and humanoid robots, you can consider buying in slowly over time, but there is no need to rush.

Many experienced investors are patient. Tesla’s stock drop might be a chance to buy, but with so much uncertainty, it’s smart to wait for more clarity from the earnings call.

 A New Investing Alert: 3 Double Down Stocks You Need to See

While Tesla’s future is murky, some investors are turning attention to three high-conviction “Double Down” stock picks being touted by top analysts, the same team that recommended Apple, Netflix, and Nvidia early in their rise. These stocks have already been recommended once, but analysts are now doubling down, a rare move that has historically led to massive returns. A few examples:

  • Netflix: Up 524,747% since its 2004 “Double Down”
  • Apple: Up 37,346% since its second recommendation
  • Nvidia: Up 263,189% from its 2009 double alert

Bottom Line

Tesla is not going anywhere, but it is going through a messy phase. April 22 will likely shape investor sentiment for months to come. Long-term believers may find opportunity, but short-term caution remains advisable.