Buying Tesla shares following correction toward $350

Tesla’s future is now up in the air, with diametrically opposed forecasts ranging from extremely positive to highly cautious. On the one hand, the company’s innovative long-term projects promise prosperity. On the other, the outlook is clouded by current headwinds and excessively high share prices.

Long-term innovations and key drivers:

The robotaxi is likely to become a major catalyst for the tech giant in 2026. It is a potential game-changer that could fundamentally transform the corporate business model, with up to 60% of its estimated value.

Long-term bullish momentum is also underpinned by Tesla’s other projects, such as the humanoid robot Optimus, the Dojo supercomputer, and energy solutions. These ambitious ideas are now taking shape, opening new growth avenues for the company.

Cybertruck is another important Musk's brainchild. Although its launch was fraught with difficulties, rising sales of this model are expected to support a revenue hike in 2025.

Current risks and headwinds:

Tesla is confronting a significant slowdown in electric vehicle (EV) sales growth and sluggish demand, especially in key markets like China, where the first figure fell by 36% in October 2025.

The EV industry is becoming increasingly competitive, with the world’s second-biggest economy acting as a primary threat to others. Escalating trade tensions and intense price competition are putting pressure on Tesla's profit margins.

Historically, the company's shares trade at a very high price-to-earnings (P/E) ratio, around 200x as of October 2025. This means that significant future gains have already been factored in, leaving little room for maneuvering and making the stock susceptible to any negative news.

Tesla has also encountered delays in developing and launching new, more affordable models, which is hurting its sales growth in the short run.

In other words, the firm’s outlook depends on what you consider its key business. As an automaker, its stock is overpriced, given all the aforementioned headwinds. As a leader in the AI sector, robotics, and driverless technologies, Tesla’s potential is basically illimitable, despite some obvious headaches and high uncertainty regarding the implementation timelines for these projects.

From a technical perspective, the share price is now facing resistance, so the chances of another pullback from current levels are high. It would be better to start buying from strong support at $350.

The overall recommendation is to buy Tesla stock from $350. Profits should be taken at $425. Stop Loss could be set at $290.

The volume of the open position should be calculated so that the potential loss (protected by a Stop Loss order) does not exceed 1% of your deposit. If your account balance does not allow opening a position of this size, it is better to avoid entering the market on this signal and wait for other trade options that meet low-risk criteria.