<div id="readability-page-1"><p><strong>Tesla</strong> <span>(TSLA<span> -0.56%</span>)</span> stock is down so far in 2025, but it generated phenomenal returns over the last decade.  Such stock performance creates the impression that the party might be over for Tesla's stock, and it's too late to buy in. It doesn't help matters that Tesla's electric vehicle (EV) sales growth has declined so far in 2025 while its margins and market share fall. Much of the hope for the stock seems to rest on the risky rollout of its robotaxi business.</p> <h2>Why Tesla stock is still attractive on a risk/reward basis</h2> <p>Let's not sugarcoat matters; declining sales and margins aren't good news. However, instead of viewing the robotaxi business as the savior of a challenged business, investors should consider it the natural and inevitable evolution of the EV industry.</p>  <p>That's a viewpoint backed up by the fact that other automakers and technology companies have pumped billions into EVs, and notably, developing autonomous vehicles and the software that runs them.</p> <h2>Why Tesla's robotaxi strategy makes sense</h2> <p>The simple reason why is that the high upfront costs and much lower running costs (servicing, maintenance, fuel, etc.) of an EV compared to an internal combustion engine (ICE) mean that the best economic case for an EV should be as a vehicle that is constantly driven, not staying in a garage. In other words, a commercial fleet vehicle, a delivery vehicle, or a robotaxi.</p> <div><p><img src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84MzA4NjUvaG91cmdsYXNzLXdpdGgtd2hpdGUtc2FuZC1hZ2FpbnN0LWJsdWUtYmFja2dyb3VuZC10aW1lLXdhaXQtMTIwMHg4MDctMWU3OTE3Yy5qcGcmdz03MDA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="700" height="470" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84MzA4NjUvaG91cmdsYXNzLXdpdGgtd2hpdGUtc2FuZC1hZ2FpbnN0LWJsdWUtYmFja2dyb3VuZC10aW1lLXdhaXQtMTIwMHg4MDctMWU3OTE3Yy5qcGcmdz03MDA"/></p><p>Image source: Getty Images.</p> </div> <p>As such, Tesla's robotaxis and full self-driving (FSD) software aren't moonshots to &#34;save&#34; a company in competitive decline; they are an inevitable evolution of the auto industry. Whether they will be successful or not is another matter, but no company stands in a better position to commercialize the opportunity than Tesla.</p> <p>If you believe this is the case, then there is still time to get in on Tesla's future performance as an investor.</p>                                                                            </div>

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<p>Tesla's stock has faced challenges in 2025, with declining EV sales and margins, leading to concerns about its future. However, the rollout of its robotaxi business is seen as a natural evolution in the EV industry, supported by significant investments from other automakers. The economic advantage of EVs as constantly driven vehicles positions Tesla favorably for commercialization. Investors who believe in this potential may still find opportunities to invest in Tesla's future performance.</p>

- Tesla's stock has declined in 2025, following a decade of strong performance, raising concerns about its future.  
- The company's electric vehicle sales growth has slowed, and its margins and market share are decreasing, with much hope resting on the rollout of its robotaxi business.  
- Despite these challenges, the robotaxi strategy is viewed as a natural evolution in the EV industry, positioning Tesla favorably for future commercialization opportunities.

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Think It's Too Late to Buy This Leading Tech Stock? Here's the Biggest Reason Why There's Still Time.