Tesla: Can It Justify Its Valuation as Core Auto Business Shows Strain?

[Pelican Press 0]

This is the hidden content, please

• Sign In
• or
• Sign Up

Tesla: Can It Justify Its Valuation as Core Auto Business Shows Strain?

Tesla (NASDAQ:) faces mounting pressure as its declining EV sales collide with intensifying competition from ******** automaker BYD and growing analyst concerns about the company’s trillion-dollar valuation. Despite CEO Elon Musk’s AI narrative, car sales still drive most of the company’s revenue.

Tesla Faces Tough Competition from Other EV Makers

******** giant BYD has overtaken Tesla in *** monthly sales for the first time, registering over 3,000 new vehicles in May compared to Tesla’s approximately 2,000. This represents a five-fold increase for BYD year-over-year and a 33% decline for Tesla.

The trend extends globally, with Tesla’s Shanghai Gigafactory—its largest manufacturing plant—suffering an eighth straight month of declining demand, falling 15% in May to 61,662 vehicles. Both the *** and Germany reported identical 36% drops in Tesla registrations last month.

Tesla’s Stock Performance and Valuation Concerns

Tesla closed at $317.06 on June 5, down 4.52% for the day, with a market cap of $1.022 trillion. Despite being the ninth most valuable company globally, the stock shows troubling metrics: a PE ratio of 189.74, YTD returns of -21.42% (versus S&P 500’s +1.51%), and what analysts call a valuation “disconnected from underlying fundamentals.”

Notable Tesla bull Gary ****** exited his position in late May, citing downside risks. The company’s core automotive business, which generated 72% of revenue and gross profit in Q1, saw volumes drop to three-year lows even as the stock rallied 33% since April earnings.

Tesla’s challenge lies in justifying its trillion-dollar valuation through AI and robotaxi promises while its core EV business contracts globally. Sales trackers warn Q2 could see an 11% drop to 395,000 cars in a best-case scenario.

With two-thirds of Q2 complete and no signs of recovery, Tesla’s ability to execute on AI ambitions while stabilizing automotive sales will determine whether its premium valuation remains sustainable.

***

Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our

This is the hidden content, please

• Sign In
• or
• Sign Up

prior to making financial decisions.

This

This is the hidden content, please

• Sign In
• or
• Sign Up

was originally published on The Tokenist. Check out The Tokenist’s free newsletter,

This is the hidden content, please

• Sign In
• or
• Sign Up

, for weekly analysis of the biggest trends in finance and technology.

This is the hidden content, please

• Sign In
• or
• Sign Up

#Tesla #Justify #Valuation #Core #Auto #Business #Shows #Strain

This is the hidden content, please

• Sign In
• or
• Sign Up

This is the hidden content, please

• Sign In
• or
• Sign Up

For verified travel tips and real support, visit: https://hopzone.eu/