Down 14%, Is Tesla a Good Buy Now?

Tesla shares have dropped 14% year-to-date in 2026 as U.S. electric vehicle demand cools and regulators intensify scrutiny of the company's self-driving technology. Despite the selloff, The Motley Fool sees a potential buying opportunity driven by two catalysts: Tesla's surging energy storage business and a recovery in European EV markets.

The energy storage division is on track to generate $18.3 billion in revenue this year, tapping into a market projected to expand at a 22% compound annual growth rate through 2033. That positions Tesla to capture meaningful share beyond its core automotive segment, diversifying revenue streams as vehicle sales face headwinds.

European EV sales are also rebounding, offering Tesla a geographic offset to weaker domestic demand. The combination of energy storage momentum and renewed international interest could cushion the stock's recent decline and support valuation multiples if execution continues.