"It was supposed to be game over for Tesla once Musk had a falling out with Trump, but TSLA stock is up nearly 120% after bottoming out that spring. It is now higher than it has ever been. Musk was also " vindicated " by a recent ruling where the justices unanimously ruled to reinstate his 2018 Tesla compensation package. It overturned a 2024 decision that voided the $140 billion deal."
"You'd expect financials to be better than ever, but that's not the case either. Net income kept falling, and revenue increased by only 11.57% year-over-year in Q3. This is a very modest increase for a stock trading at 219 times 2026 expected earnings. You're paying exactly 15 times forward sales, so even top-notch margins would keep this stock at expensive levels."
"This is the hardest part to figure out, and what better way to find an answer than to ask the bulls themselves? Wedbush analyst Dan Ives believes Tesla can reach $2 trillion. This is the same analyst who sees becoming a $1 trillion company, but a large number of investors share his optimism. His rationale is that Tesla is in a " defining moment" due to Robotaxi and robotics."
Tesla shares have risen dramatically, climbing about 120% from spring lows and reaching record highs after a court reinstated Musk's 2018 compensation package. Recent financials show net income declines and only 11.57% year-over-year revenue growth in Q3, leaving valuation stretched at about 219 times 2026 expected earnings and 15 times forward sales. Bullish investor conviction centers on potential future businesses such as Robotaxi and the Optimus humanoid robot, with analysts and banks assigning large portions of valuation to those prospects despite limited near-term financial evidence.
Read at 24/7 Wall St.
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