TESLA is overvalued and here is why - waiting for 270Tesla is overvalued, especially when compared to traditional metrics like P/E ratio. We have P/E 190 atm. If we compare Tesla to other EV companies, Tesla’s valuation might appear inflated. For example, companies like Rivian, Lucid, and NIO have been hyped similarly, but most haven’t shown the same level of growth and revenue.
Investors are betting on Tesla’s dominance in electric vehicles, energy, and other sectors, which drives the high valuation. Tesla's stock is also closely tied to Elon Musk’s reputation, decisions, and Twitter presence.
Tesla has become more profitable in recent years, but many argue that it’s still a growth company where profits aren't the main focus. The question is whether the current market cap is justified based on actual cash flow and profitability - of course NO.
Tesla was created as a startup and truly revolutionized the auto industry, but its stock is now worth several hundred times more than it is as a technology-driven car manufacturer. Future expectations have always driven the stock market, and this phenomenon will continue to accompany us. However, I believe that in terms of future expectations, Tesla, as an automaker, has long since exhausted its potential, and its competitors have long been replicating Tesla's "miracle," but in much more efficient ways.
A vivid example of this is the recent story of ChatGPT and DeepSeek. I am confident that sooner or later, Tesla will also become a "victim" of this.
On the other hand, Elon Musk’s reputation, political involvement, and trade wars—all of these are potential bombs placed under Tesla.
