Should I buy Tesla stock in 2025? South Africa Investment Guide

What is Tesla?

How much is the Tesla stock?

The price of Tesla stock is rising this week. At 358.43 USD, the stock has gained 0.43% in the past 24 hours but remains down 5.10% over the week.

Tesla’s market capitalisation stands at 1.154 trillion USD, with a robust average 3-month trading volume of 124.13 million shares.

The P/E ratio is currently 203.65, and the dividend yield is 0%, as Tesla does not pay dividends. With a beta of 2.43, TSLA is considered highly volatile—an important factor for South African investors to keep in mind when evaluating its growth potential.

Our full analysis on Tesla stock

After an in-depth review of Tesla’s latest quarterly results and a rigorous analysis of its stock performance over the past three years, we leveraged a blend of cutting-edge financial indicators, proprietary technical signals, comparative market data, and competitive benchmarking. Our holistic approach—shaped by advanced algorithms—enables a high-conviction view on the stock’s risk/reward profile. So, why might Tesla once again represent a strategic entry point into the global technology and mobility sector in 2025?

Recent Performance and Market Context

Tesla’s share price has demonstrated remarkable dynamism in 2025. As of 29 May, TSLA is trading at USD 358.43, placing it in the upper echelons of its 52-week range (USD 167.41–488.54). Despite a -27.77% pullback over the past month, largely attributable to profit-taking following its post-earnings rally and broader technology sector volatility, the stock still boasts a stellar +103.43% return over the past 12 months. This surge underscores robust long-term shareholder confidence.

Key positive events underpinning this performance include the upcoming launch of the much-anticipated robotaxi service—scheduled for 12 June in Austin, Texas—and the renewed strategic focus from CEO Elon Musk, who returned to a more hands-on operational role at Tesla. Market sentiment is increasingly optimistic, especially concerning artificial intelligence (AI) and autonomous driving prospects. The broader sector context also plays a pivotal role: global electric vehicle (EV) adoption continues to accelerate, supported by favourable government policies, tightening emissions standards, and rising consumer interest in sustainable mobility. South African investors, attuned to the nation’s growing emphasis on energy transition, may find Tesla’s global energy ambitions and technological leadership strongly aligned with local and continental themes.

Technical Analysis

Currently, TSLA sits just above a key technical support at USD 356.00 and is eyeing short-term resistance at USD 367.71. The Relative Strength Index (RSI) at 64.27 reflects a neutral to slightly overbought condition, indicating ongoing buying interest but not yet an overheated market. The Moving Average Convergence Divergence (MACD) at +20.18 continues to offer a constructive, positive signal—reinforcing the view that momentum remains on the bulls’ side.

Since Tesla’s Q1 results in late April, the stock has entered a vigorous uptrend, gaining almost 50% from those levels. Technically, the stock has respected both the 50-day moving average (currently near USD 271) and intermediate support at USD 289, both of which historically act as strong floors in market pullbacks. While some signs of over-extension exist—typical of high-growth technology stocks—Tesla’s overall technical complexion suggests it may be primed for a fresh bullish phase, especially if additional near-term catalysts materialise as expected.

Fundamental Analysis

Tesla’s current valuation—market capitalisation exceeding USD 1.15 trillion, with a forward P/E of 169.49 and a price-to-sales ratio of 13.13—reflects significant embedded growth expectations. While Q1 2025 revenue came in at USD 19.34 billion (-9% YoY), this must be contextualised against temporary Model Y production interruptions and a short-term dip in deliveries, rather than core demand erosion. Notably, Tesla maintains sector-leading profitability metrics (6.38% margin, 8.77% ROE, and 3.72% ROA), and a formidable balance sheet with USD 37 billion in cash against a modest 17.41% debt/equity ratio. This financial resilience provides a runway for ongoing R&D, manufacturing expansion, and strategic pivots.

Beyond headline numbers, Tesla’s structural strengths merit renewed interest:

• Unparalleled innovation: Leading AI-powered self-driving technology, continuous product improvement, and a highly integrated ecosystem (vehicle, software, energy, and insurance).
• Dominant global market share: A footprint spanning the largest EV markets—USA, China, and Europe—and an accelerating international expansion.
• Brand power and network effects: The Supercharger network, with unrivalled reach and reliability, cements Tesla’s competitive moat and fosters sticky customer relationships.
• Diversification optionality: The company’s expanding presence in energy generation and storage positions it to capture value well beyond traditional automotive revenues.

Despite the well-flagged risk of an elevated P/E, the valuation appears justified when factoring in Tesla’s unique sector leadership, capacity for disruptive innovation, and robust cash flows.

Volume and Liquidity

Tesla remains among the most liquid large-cap stocks globally. With an average daily volume of 124 million shares and a free float representing 87% of its outstanding equity, the stock offers exceptional liquidity. This depth attracts institutional and international capital, supporting tight spreads and dynamic price discovery. For South African investors, such liquidity ensures ease of execution and portfolio flexibility—critical factors in high-growth, fast-moving sectors.

Short interest remains modest at just over 3% of the float, signalling neither pronounced bearish conviction nor excessive over-crowding by shorts—often a precursor to short squeezes and sharp rallies.

Catalysts and Positive Outlook

The imminent launch of Tesla’s robotaxi service is arguably the principal near-term catalyst. The company is set to deploy approximately 10 fully autonomous Model Y vehicles initially, with plans to scale rapidly. Should this pilot prove successful, Tesla’s addressable market and recurring revenue profile could be transformed overnight, potentially ushering in a “golden age of robotaxis” that markets have long anticipated.

Other positive drivers include:

• Artificial intelligence leadership: Tesla’s industry convergence of AI, hardware, and massive data collection sets it apart as the only carmaker developing AI at true scale.
• International growth: Tesla’s manufacturing in China and Europe continues to gain traction, diversifying revenue streams and bolstering economy of scale.
• Renewable energy expansion: Tesla’s energy generation and storage division is fast becoming a meaningful contributor, benefitting from the global surge in sustainable infrastructure investment.
• Management focus: Elon Musk’s renewed commitment underscores a strategic shift towards execution and innovation at scale—precisely when inflection points in the mobility and energy markets demand it.
• Favourable sector dynamics: As regulators worldwide mandate lower emissions and consumers gravitate towards greener alternatives, pure-play innovators like Tesla are poised to capture disproportionate market share.

Investment Strategies

TSLA’s recent pullback and proximity to major support levels offer tactical entry points for different investor profiles:

• Short-Term:
  Technical traders may find an attractive setup, with the stock consolidating just above USD 356 support amid positive buying momentum. Any positive robotaxi updates or strong delivery figures could prompt a rapid upside breakout towards the USD 367–400 range.
• Medium-Term:
  Positioning ahead of the 12 June robotaxi launch could provide optionality for gains if the rollout proves successful. Given the stock’s historical pattern—a swift re-rating on positive news—investors seeking event-driven exposure may see favourable asymmetry.
• Long-Term:
  For buy-and-hold investors, Tesla’s sustained leadership in EVs, AI, and energy, combined with its robust financials and culture of disruptive innovation, lays a compelling foundation for value creation. Entry at or below the current consolidation phase could prove timely as broader mobility and decarbonisation trends accelerate in the coming years.

Notably, South African portfolios seeking diversified global tech and clean energy exposure may find Tesla particularly relevant, given local policy moves towards renewables and electrification.

Is It the Right Time to Buy Tesla?

The synthesis of Tesla’s technical robustness, substantial liquidity, and a wealth of upcoming positive catalysts supports a confident view that the stock is entering a promising new phase. Despite a transient revenue dip in Q1, the company’s financial strength, strategic clarity under Musk’s leadership, and unique positioning at the crossroads of mobility and artificial intelligence serve to justify a renewed focus.

Optimistically, the impending robotaxi launch and AI expansion appear poised to redefine the company’s total addressable market and revenue mix. Add in a well-capitalised balance sheet and unmatched brand cachet, and Tesla seems to represent an excellent opportunity for investors aiming to capture sustainable, innovation-driven growth within the global technology sector.

For those looking to enhance their technology and green-economy exposure—especially in a South African context—Tesla’s pivotal moment may well be approaching. As the company stands on the threshold of multiple industry-defining catalysts, the fundamentals justify renewed interest and may signal the start of a new bullish phase.

In summary, Tesla’s combination of technical momentum, scalable innovation, and positive secular tailwinds combine to forge a rare opportunity—one that serious investors may want to consider as the company reasserts its role at the vanguard of global mobility transformation.

How to buy Tesla stock in South Africa?

Buying Tesla stock online is now both simple and secure for South African investors, provided you use a regulated broker. You have two main ways to invest: spot buying, where you become a direct shareholder, or trading via CFDs, which allows you to speculate on price movements without owning the actual shares. Choosing the right approach depends on your investment goals, risk appetite, and experience. To help you make an informed choice, a detailed broker comparison is available further down the page.

Spot buying

Spot buying (commonly referred to as a cash purchase) means you buy real Tesla shares and become a direct shareholder of Tesla, Inc., listed on the NASDAQ in the United States. Your shares are held securely in your name through your broker, and you benefit directly from any price increases (or decreases). Typical fees for cash purchases in South Africa include a fixed commission per order, which is often around R100–R150, or about $5–$10, plus a small currency conversion fee.

Concrete example with a $1,000 investment

If the Tesla share price is $358.43 (as of 29 May 2025), you can buy about 2.77 shares with your $1,000, factoring in a brokerage fee of around $5.

✔️ Gain scenario: If the share price rises by 10% to $394.27, your shares would be worth $1,100.
Result: That’s a gross profit of +$100, i.e. +10% on your initial investment.

Trading via CFD

CFD trading (Contract for Difference) on Tesla shares involves speculating on the price of Tesla stock without taking direct ownership. CFDs allow you to use leverage, meaning you can gain greater exposure to the market with a smaller initial deposit. With CFDs, you'll pay a "spread" (the difference between buy/sell price set by your broker) and possibly overnight financing costs if you hold your position for more than a day.

Example with a $1,000 stake and 5x leverage

You open a CFD position on Tesla with $1,000 and choose 5x leverage, giving you exposure to $5,000 worth of Tesla shares.

✔️ Gain scenario: If Tesla's price rises by 8%, your position increases by 8% × 5 = 40%.
Result: That's a gain of +$400 on your $1,000 deposit (before subtracting fees).

Final advice

Before you invest, always compare the fees, minimum deposit requirements, and support offered by different brokers. Fees and conditions vary widely—what seems affordable at first glance can have a big impact on your long-term returns. The right choice between spot buying and CFD trading depends on your objectives: spot investing suits those seeking real share ownership, while CFDs cater to those comfortable with higher risk and short-term speculation. Find detailed broker comparisons further down the page to help you choose the platform best adapted to your needs.

Our 7 tips for buying Tesla stock

The latest news about Tesla

Tesla will launch its autonomous Robotaxi service on June 12, 2025, marking a potential industry shift. This long-awaited event will begin in Austin, Texas, with an initial deployment of around ten autonomous Model Y vehicles and promises a rapid scale-up to thousands if early results are positive. The Robotaxi initiative, which leverages Tesla's leadership in self-driving and artificial intelligence, is widely viewed as a major positive catalyst for the stock, with global market optimism reflected in sector commentary and trading sentiment. South African analysts are closely watching since autonomous mobility could reshape transportation globally, opening future partnership or technology transfer opportunities to the local market.

Tesla stock continues a strong upward trend despite a negative short-term performance, driven by innovation and resilient investor confidence. The share price has more than doubled year-over-year, even though the past month saw a decline of nearly 28%. Technical indicators such as the RSI (64.27) and a positive MACD signal confirm a bullish bias since the Q1 results, with a notable +50% rebound since April 22. The market's appetite for future growth, particularly on the back of upcoming AI and mobility solutions, maintains investor interest, including from South African institutional investors searching for disruptive technology exposure.

Elon Musk has refocused his efforts entirely on Tesla, reinforcing confidence in its leadership and strategic execution. Having officially departed from his role at the US Department of Government Efficiency, Musk’s renewed full-time presence at Tesla is expected to streamline decision-making and accelerate roadmap initiatives. This realignment is perceived positively by both shareholders and international analysts, as it reinforces the vision and operational continuity needed for major launches such as the Robotaxi, and by extension, strengthens Tesla’s attractiveness as a global disruptor in mobility—a theme also significant for South African capital market participants tracking high-impact leadership stories.

Despite softer Q1 2025 results, Tesla maintains sector leadership through substantial cash reserves and diversified revenue streams. Although Q1 revenues fell 9% year-over-year and net income declined significantly, the company preserves robust fundamentals with $37 billion in cash and expanded business lines—from automotive and energy storage to insurance and software services. This financial resilience is essential for absorbing volatility and investing in R&D, positioning Tesla favourably compared to peers, especially for long-term investors in South Africa looking for companies able to navigate and lead cyclical transitions in global industry.

Tesla’s global strategy and innovation pipeline offer potential synergies and collaborations, relevant to South Africa’s ambitions in green mobility and technology adoption. While Tesla does not yet have a direct sales or manufacturing presence in South Africa, its expanding international footprint and ecosystem (including energy storage and charging infrastructure) are increasingly referenced in local policy and industry circles. South African companies and policymakers monitor Tesla’s progress as a benchmark for EV adoption and grid integration strategies, with potential future collaboration or knowledge transfer opportunities as the regional market matures and regulatory frameworks adapt.

FAQ

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.