"FY2025 revenue fell 2.93% and net income dropped 46.79%. Full-year EPS of $1.66 against a $428.35 share price implies a multiple that requires earnings to roughly quintuple before the stock looks ordinarily expensive. Forward P/E of 208, EV/EBITDA of 131, PEG of 5.9."
Tesla trades around $428.35 with valuation metrics that assume future financial performance not yet reflected in current results. The stock has risen sharply over the past month while Wall Street’s average target remains below the current price. Recent quarterly results show revenue growth to $22.39 billion, services growth, and FSD subscriptions rising to 1.28 million. Auto gross margin expanded and GAAP operating income increased, with EPS beating expectations. Management guided to over $25 billion in 2026 capex and negative free cash flow for the rest of the year. The bull case centers on AI buildout progress, including Cybercab pilot production, robotaxi operations, FSD approvals, and expected unsupervised FSD timing. The bear case points to declining FY2025 revenue and net income, making the current valuation difficult to justify without earnings acceleration from new products.
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