Tesla

TSLA

Market cap $1.43T

Tesla's most recent earnings numbers showed a top-line beat, but its bottom line was not impressive. The business is growing, but it may not be fast enough to justify the stock's hugely inflated valuation.

A recent analyst's note suggested that Tesla stock could surge by 25% due to the company's autonomous vehicle initiatives.  The AV market is projected to be worth an estimated $1.4 trillion by 2040.

Tesla's stock has been very volatile over the last five years. Its one-year performance has barely beaten the market.

CEO Elon Musk once described the Cybertruck as Tesla's “best ever” product. But demand for the controversial pickup truck has dried up.

Tesla trades near a $1.3T market cap with a P/E far above auto-sector norms. Musk's record-breaking pay package heightens governance concerns.

Elon Musk's new pay package sounds egregious, but a big payday is not coming anytime soon. In order for the Tesla CEO to get the full compensation, the company will need to hit many growth-related targets.

Sunday Robotics hired several former Tesla staff members to work on its Memo home robot. Some Sunday Robotics staff previously worked on the Tesla Optimus and Autopilot programs.

Tesla, Inc. is rated Buy, driven by belief in its AI potential, XAI merger prospects, and alignment with the U.S. "Genesis Mission." TSLA's fundamentals are overvalued as always, but technical analysis suggests an 80% upside to $770-780 is possible if a Wave 3 rally unfolds. A stop-loss near $330 may be prudent, offering a 3:1 risk-reward profile.  Proximity to the 200-day moving average makes for a good setup.

Tesla's (NASDAQ: TSLA) stock trades at a high valuation for several reasons.

Tesla's European sales plunged nearly 50% in October. CEO Elon Musk wants investors to focus on the company's AI plans.