Tesla stock may be 28% too high as its EV shipments fell while rival BYD grew faster than the industry in 2024. Can Tesla grow 20% in 2025 selling a self-driving taxi?

After announcing the delivery results for the fourth quarter of 2024, Tesla's stock price fell by more than 5 percent. This marks the first annual decline in the company's history. The stock performance may also have been influenced by an incident involving one of its vehicles.

However, since then, the stock has been on fire. The company first impressed investors with its third-quarter earnings report, which showed strong profit growth, and CEO Elon Musk predicted that vehicle production would increase by 20% to 30% in 2025, a significant improvement from flat growth in 2024.