11 Worst-Performing Blue Chip Stocks So Far in 2025

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1. Tesla, Inc. (NASDAQ:TSLA)

Year To Date Share Price Return as of April 25: – 24.87%

Number of Hedge Fund Holders: 126

Tesla, Inc. (NASDAQ:TSLA) is an automotive and clean energy company that designs, manufactures, and sells electric vehicles, energy generation and storage systems. It also focuses on developing and implementing advanced technology in electric vehicles, renewable energy, and automation.

The selloff comes on Tesla, Inc. (NASDAQ:TSLA) emerged as one of the most susceptible companies amid the aggressive US trade war and tariffs. The company’s net income fell by 71% in the first quarter of 2025 to $409 million as it failed to overcome competitive pressure overseas. Tesla delivered a 9% drop in revenue in Q1 2025 that totalled $21.3 billion, hurt by a 20% drop in automotive revenue at $14 billion from $17.4 billion a year ago.

The revenue drop came as the EV giant lost market share in Europe, which fell to 2% from $2.9% a year ago. Amid the disappointing financial results, analysts at Stifel cut their price target on the stock to $450 from $455 while reiterating a Buy rating. The price target cut comes amid concerns that Tesla, Inc. (NASDAQ:TSLA) will remain under pressure owing to weaker-than-expected vehicle deliveries. The polarizing role of Chief Executive Elon Musk in President Donald Trump’s administration is also not helping the EV giant’s prospects in the electric vehicle space.

While we acknowledge the potential of Tesla, Inc. (NASDAQ:TSLA) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than TSLA but that trades at less than 5 times its earnings check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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