Tesla's robotaxi business and full self-driving (FSD) software are a natural evolution of the auto industry.

Tesla ( TSLA 1.42% ) 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.

Why Tesla stock is still attractive on a risk/reward basis

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 bu

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