Gearstd
Tesla, Inc. (NASDAQ:TSLA) stock, a significant investment for many, has experienced a substantial decline of over 30% since the start of the year. Despite this, it remains overvalued at a forward P/E ratio of 56X. The company’s recent announcement of a disappointing quarter and the decision to lay off 10% of its employees further adds to the concern.
Much of Tesla’s overvaluation seems to stem from the anticipation of a groundbreaking robotaxi business. However, this belief is not without its risks. Tesla CEO Elon Musk’s tweet on April 5th at 4:49 PM, announcing the introduction of Tesla’s robotaxi on August 8th, has bolstered this valuation based on the promise of improved Full Self-Drive (“FSD”) technology at a time when Tesla is grappling with a slowing electric vehicle (“EV”) market and heightened competition.
According to an article in Investors Business Daily, or IBD, Tesla will focus on a lower-cost robotaxi instead…
