"Tesla ( NASDAQ:TSLA) stock has been so incredibly resilient despite all the volatility facing big tech and fears over what could happen to the broad market if AI demand were to suddenly fall off. With Dr. Michael Burry expressing his belief that shares of the electric vehicle firm are "ridiculously overvalued," while some sell-side analysts downgrade, citing similar valuation concerns, it's becoming difficult to justify holding on while shares are just north of the $450 per-share mark."
"Do the promise of robotaxis and robots warrant such a high valuation? Though it's tough to tell how far along Tesla's FSD (full self-driving) innovation is, or how long it'll be before Optimus starts autonomously serving drinks at the local bar, there seems to be quite a divide between the bulls and the bears, or the believers and the skeptics."
"Of course, Elon Musk is not a man to doubt, but the valuation is getting harder to justify, especially if it takes many years longer for robotics, self-driving cars, and all the sort to really come into their own. Personally, I share the same valuation concerns that Burry and one big-name analyst have. The stock currently trades at more than 307 times trailing price-to-earnings (P/E). Even with the powerful growth drivers, I have no idea if the firm can grow into its multiple fast enough."
Tesla shares have shown resilience despite broad tech volatility and concerns about falling AI demand. Prominent investors like Dr. Michael Burry call the shares "ridiculously overvalued," and some sell-side analysts have downgraded the stock. Future upside depends heavily on successful execution of robotics (Optimus) and robotaxi/full self-driving deployments. There is a sharp divide between bullish believers and skeptical bears over timelines and feasibility. The stock trades at over 307 times trailing P/E, raising questions about whether growth can expand fast enough to justify the current valuation.
Read at 24/7 Wall St.
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