Should I buy Tesla stock in 2025? (Canada)

What is Tesla?

How much is Tesla stock?

The price of Tesla stock is rising this week. As of today, Tesla shares are trading at $340.99, showing a daily decrease of 2.57% but a strong 7.10% gain over the past week.

The company’s market capitalization now stands at $1.098 trillion, with an average three-month trading volume of 124.43 million shares.

Tesla is trading at a high price-to-earnings (P/E) ratio of 194.85 and does not currently pay a dividend, while its beta is 2.43, indicating pronounced volatility.

With these numbers, Tesla remains a dynamic but high-risk choice for California investors seeking growth in the electric vehicle sector.

Our full analysis on Tesla stock

After a detailed review of Tesla’s latest financial results and a rigorous assessment of its share price evolution over the past three years, we’ve applied our proprietary algorithms to synthesize insights from financial ratios, technical signals, sectoral analysis, and peer benchmarking. This multifaceted analysis positions us to interpret not just the headline numbers, but also the deeper structural levers that could propel Tesla into its next growth chapter. So, why might Tesla stock once again become a strategic entry point into the high-growth technology and electric mobility sector in 2025?

Recent Performance and Market Context

Over the last twelve months, Tesla’s share price has delivered a striking +92.15% return, underscoring renewed investor enthusiasm for large-cap technology growth stories. Despite an intraday dip of -2.57% and a modest -1.45% pullback over six months, the stock recently surged +7.10% in the past week, reflecting the market’s strong sensitivity to positive technical momentum.

Key positive catalysts have recently emerged:

• Tesla maintains absolute leadership in the US EV market with an estimated 55% share, despite intensifying competition from both legacy carmakers and disruptive startups.
• The roll-out of Full Self-Driving (FSD) capabilities in production vehicles and concrete updates on the robotaxi roadmap have brought Tesla’s AI ambitions back into investor focus.
• The company’s $1.098 trillion market capitalization, supported by robust trading volumes, illustrates sustained institutional and retail support, further magnified by persistent sectoral inflows into tech and green innovation.

The macro backdrop remains notably favorable for the EV sector:

• Global decarbonization policies and elevated energy prices are turbocharging electrification across transportation.
• Interest rates in North America have shown signs of stabilization, providing a constructive environment for high-growth, high-beta tech leaders to outperform.
• In the California market – globally recognized as a bellwether for clean tech adoption – regulatory support and tax incentives for zero-emission vehicles remain among the most favorable worldwide.

Technical Analysis

From a technical perspective, Tesla currently exhibits robust upward momentum:

• The 14-day RSI at 71.83 suggests short-term overbought territory, yet also signals the intensity of recent buying pressure and, historically, entry into sustained rallies.
• The MACD reading of 20.32, well above its signal line, underscores positive price acceleration.
• Tesla’s share price remains decisively above all key moving averages:
• 20-Day MA: $289.82
• 50-Day MA: $266.97
• 100-Day MA: $320.92
• 200-Day MA: $295.98

This alignment signals the onset of a well-supported bullish trend, marking $336.31, $329.80, and $324.89 as major support zones likely to attract dip-buyers. Overhead, resistance appears at $347.73, $352.65, and $359.16, areas to monitor for potential breakout confirmation.

The confluence of support above all major moving averages, coupled with high RSI and strong MACD, is indicative of a stock potentially entering a new bullish phase—typically a pattern watched closely by both momentum and growth investors.

Fundamental Analysis

While Q1 2025 results revealed near-term pressures—with a 20% YoY decline in automotive revenue and net income dropping 71% to $409 million—the broader context reveals multiple underlying strengths:

• Resilient Leadership: Tesla continues to dominate the North American EV landscape, and its global execution capabilities remain unrivaled.
• Strategic Expansion: The pivot to AI, robotics, and autonomy—highlighted by ongoing FSD and robotaxi developments—positions Tesla at the intersection of high-margin, high-growth adjacencies. This strategic shift is likely to support a return to robust revenue growth by 2026.
• Brand and Platform: Tesla’s iconic brand, unmatched charging infrastructure, and best-in-class software differentiate it from traditional automakers. Its vertical integration enhances gross margins and agility.

Although the current P/E (TTM) stands at 194.85 and its forward P/E at 163.93—undeniably rich multiples—Tesla’s premium reflects its unparalleled scalability in markets where winner-take-most economics often prevail. Such valuations, relative to strategic assets and innovation pipelines, may appear justified for investors with conviction in Tesla's long-term AI-driven roadmap.

Volume and Liquidity

Tesla's stock demonstrates exceptional liquidity, with an average daily trading volume of 124.43 million shares—a testament to deep market confidence and seamless trade execution for both institutional and retail investors. The large public float (2.80 billion shares out of 3.22 billion outstanding) ensures a frictionless price discovery process and a dynamic environment for short- and medium-term revaluations.

Healthy volume at current levels reinforces the idea of a “liquidity premium,” where large inflows and outflows are efficiently absorbed, reducing slippage and volatility while providing tactical investors the flexibility to adjust exposure rapidly.

Catalysts and Positive Outlook

Looking forward, Tesla’s innovation engine remains the central pillar for bullish optimism:

• Robotaxis and Cybercab: The announced 2026 mass-market launch of Cybercab robotaxi operations could, if successful, inaugurate a new phase of recurring, high-margin revenue, leveraging Tesla’s prowess in hardware, AI, and data.
• AI, FSD, and Software: Deployment of FSD “Unsupervised” on new vehicle lines demonstrates technical progress and a pipeline toward software-based, recurring monetization models—potentially increasing lifetime value per vehicle well beyond hardware sales.
• Strategic Investments:
• Memorable for its first-mover battery technology and vertical energy products, Tesla is rapidly scaling its storage business and supercharger footprint.
• Further expansion in AI-driven manufacturing and energy management could deliver attractive operating leverage.
• ESG Leadership: Tesla continues to set the global standard for sustainable innovation—an attribute critical for institutional capital and regulatory goodwill, especially in climate-progressive jurisdictions like California.

Emerging regulatory and consumer tailwinds in North America and Europe, combined with heightened technology adoption rates, provide a uniquely favorable context for Tesla to unlock new S-curves of growth before the end of the decade.

Investment Strategies

Tesla’s present technical and fundamental context provides distinct arguments for multiple time horizons:

• Short-Term Entry
• The current overbought technical setup and strong momentum suggest opportunities for tactical traders looking to participate in continued upside following bullish breakouts.
• Entry around key support levels ($336.31, $329.80, $324.89) may provide an efficient risk/reward profile, especially if supported by sustained trading volume.
• Medium-Term Positioning
• Anticipation of critical company updates (CEO succession, new compensation structures, or additional robotaxi/FSD milestones) could ignite powerful re-rating catalysts through late 2025.
• Investors focused on medium-term horizons may find the next 3–12 months attractive for accumulating positions in anticipation of improving margin and new product launches.
• Long-Term Conviction
• For long-horizon asset allocators, Tesla’s embedded optionality in AI, energy systems, and autonomous mobility clearly supports the thesis that current price levels could represent an attractive entry point before the full materialization of these high-value adjacencies.
• The stock’s history of volatility offers systematic, disciplined investors the chance to build exposure during periods of technical retracement, ahead of expected sector and company-specific upside starting in 2026.

In every time frame, a disciplined, phased approach—calibrating position sizes around technical supports and company-specific catalysts—seems a prudent way to harness Tesla’s well-documented propensity for rapid, outsized price movements.

Is it the Right Time to Buy Tesla?

Tesla’s current setup—characterized by sector leadership, unique brand power, relentless innovation, and robust technical momentum—appears to present an excellent opportunity for investors seeking exposure to the next wave of transformation in transportation and technology. While short-term earnings headwinds and headline risks remain, the structural growth story powered by robotaxi deployment, AI, and energy solutions is difficult to match elsewhere in public markets.

With strong liquidity, supportive market structures, and promising near-term and structural catalysts, renewed interest in Tesla’s stock at current levels seems justified for investors with an appetite for high-growth, high-volatility opportunities. For those prepared to engage with both the volatility and potential upside inherent to this iconic tech name, Tesla may be entering a pivotal new phase that could redefine returns in the electric mobility and AI-driven technology sectors going into 2026.

In summary, the combination of compelling technical signals, far-reaching innovation, and dominant EV market positioning renders Tesla a dynamic and forward-looking candidate for investment consideration at this juncture—affirming its central place in any growth-oriented portfolio strategy.

How to buy Tesla stock in CA?

Buying Tesla Stock Online: Simple, Secure, and Flexible Investing in Tesla stock online is both straightforward and secure when you use a regulated Canadian broker. Today, anyone can access Tesla (TSLA) shares directly from their computer or smartphone, benefiting from robust protection and clear fee structures. There are two main ways to invest: you can purchase shares outright (spot buying) to own a piece of the company, or use Contracts for Difference (CFDs) to trade on Tesla’s price movements with flexibility and leverage. Further down this page, you’ll find a detailed broker comparison to help you choose the right platform for your needs.

Spot Buying (Cash Purchase)

A cash purchase means buying Tesla shares directly and becoming a real shareholder. In Canada, this transaction is done through a regulated brokerage account. Typical fees consist of a fixed commission per trade, which generally ranges from $0 to $10 CAD, depending on the broker and the type of account.

Concrete Example

Suppose Tesla shares are trading at $340.99 USD (approximately $465.00 CAD, depending on the exchange rate). With a $1,000 CAD investment and a typical brokerage fee of $5, you could purchase about 2 Tesla shares (since $465 x 2 + $5 = $935), leaving a small cash balance.

Gain Scenario

If the share price rises by 10%, your 2 shares would be worth $1,023 CAD (2 x $511.50), compared to your initial outlay.
Result: +$93 gross gain, or +9.3% on your $1,000 investment (before currency conversion and taxes).

Trading via CFD

CFD trading allows you to speculate on Tesla’s price movements without owning the underlying shares. With CFDs, you can take long (buy) or short (sell) positions, and utilize leverage. Fees generally include the spread (difference between buy and sell prices) and overnight financing charges if you hold your position for multiple days.

Concrete Example

You open a $1,000 CAD CFD position on Tesla shares with 5x leverage, giving you exposure to $5,000 CAD worth of TSLA stock. If Tesla’s price rises by 8%, your position gains 8% x 5 = 40%.

Gain Scenario

Your profit would be $400 CAD (before spread and overnight fees) on a $1,000 investment.

Final Advice

Before investing in Tesla or any other stock, it’s important to compare broker fees, account types, and trading conditions. Each platform offers different advantages, so it’s worth taking the time to find the option that best fits your goals and investing profile. Whether you prefer to own your Tesla shares outright or actively trade on price movements, there’s a solution for every type of investor. To help with your decision, a detailed broker comparison is available further down the page—make sure to check it out before making your move!

Our 7 tips for buying Tesla stock

The latest news about Tesla

Tesla stock surged 7.1% in the last week, outperforming broader market indices and signaling strong investor confidence. This recent upswing, bringing Tesla’s price to $340.99 as of May 19, 2025, situates the stock well above its key moving averages and close to its upper resistance levels. Market volumes remain robust, with California—Tesla’s largest US market and a major center for electric vehicle (EV) adoption—continuing to see high delivery volumes, underpinning regional demand. The stock’s outperformance is further reflected in its year-over-year gain of over 92%, reinforcing investor optimism despite macroeconomic uncertainties.

All major technical indicators for Tesla now display bullish signals, with the stock trading above key moving averages and showing strong momentum. With the 20-, 50-, 100-, and 200-day moving averages all below the current price, technical traders have interpreted this pattern as positive for near-term strength. The Relative Strength Index (RSI) has climbed to 71.83, entering the overbought zone, which indicates heightened market enthusiasm. For CA-based analysts, this sustained technical momentum has relevance given regional institutional investors’ significant exposure to Tesla, making technical triggers particularly impactful for local market sentiment and portfolio positioning.

Tesla’s leadership in the US electric vehicle market remains unchallenged, maintaining approximately 55% EV market share nationally, with California as a flagship state. California’s legislative support for EVs—including aggressive emissions targets and infrastructure investment—continues to provide a constructive backdrop for Tesla, which dominates the state’s EV sales charts. The company’s deep market penetration is complemented by its California-based Supercharger network, enhancing the case for long-term adoption and reinforcing the brand’s local presence amid escalating national and international competition.

Advancements in autonomous driving, notably the rollout of Full Self-Driving (FSD) technology and robotaxi development, hold significant promise for future growth. Tesla’s implementation of FSD Unsupervised in current Model 3, Model Y, and Cybertruck vehicles—already a visible presence on California roads—signals continued technological leadership. Local regulatory engagement and innovation-friendly partnerships in California serve as tailwinds, while the announced timeline for volume production of the Cybercab robotaxi by 2026 instills optimism regarding new revenue streams and strengthens investor confidence in the company’s strategic direction.

Despite a disappointing Q1 2025 financial performance with automotive revenue down 20% year-over-year, Tesla’s long-term strategic focus and innovation agenda continue to support positive market sentiment in California and beyond. Analysts noted that while earnings per share and net income fell short of expectations, the stock’s technical resilience and strong institutional support—especially within technology-driven investment hubs such as California—have cushioned negative impacts. Investors appear to interpret the short-term financial softness as a transitional phase, prioritizing Tesla’s ongoing product innovation, robust brand equity, and prospects within California’s rapidly expanding EV ecosystem.

FAQ

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P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.