From Nasdaq: 2024-11-11 10:07:32

1. Tesla stock surged after Donald Trump’s re-election, as Elon Musk’s support boosted the company. However, with Tesla trading at 100x forward earnings, concerns arise over valuation multiples.
2. Musk’s $130 million donation to Trump’s campaign paid off, with Tesla shares gaining $26 billion post-election. Trump may appoint Musk to a government role, influencing policies and regulations beneficial for Tesla.
3. Tesla’s alliance with Trump could shape future automotive policies, particularly in autonomous vehicles and Robotaxis. Musk aims to advocate for a unified strategy for regulating autonomous vehicles.
4. Tesla’s high valuation post-election raises concerns, as the company trades at 100x forward earnings. Comparing to other car stocks like Li Auto and General Motors, Tesla appears overvalued.
5. Tesla’s focus on self-driving technology may be a concern, as it faces competition in the Robotaxi market. Waymo leads in autonomous vehicles, while Tesla’s FSD system has drawn scrutiny from regulators.
6. The future of Tesla’s self-driving opportunity remains uncertain, with Musk’s optimism about their humanoid robot, Optimus. Analysts remain cautious, with the average price target suggesting a downside potential for Tesla stock.
7. Despite Tesla’s potential, the stock’s high valuation and risky nature prompt concerns among analysts. Musk’s optimism and future prospects may not justify the current valuation multiples, as indicated by the average price target.

Read more at Nasdaq: I’m Trying My Hardest to Justify Tesla Stock’s Valuation