Tesla Is A Bargain Or Overrated

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Tesla Is A Bargain Or Overrated

Tesla (Tsla) Is A Bargain Or Overrated?

Everyone agrees that 2025 isn't a good year for Tesla stock at all. From a decline in new car sales to plummeting profits, there's a lot to unpack!

From its high in December, the stock is down by almost 29%. In addition, the Tesla stock is down by 15% since the start of the year 2025.

Tesla Has A P/E Ratio Of 189

If we look at the P/E ratio of Tesla (TSLA), it's around 189! No matter which fundamentals or technical charts you look at, a ratio of 189 is way too high.

On top of that, the earnings of Tesla during the Q1 actually moved lower. So, any more results like these in the next quarters would make anyone question the valuation of the Tesla (TSLA) stock.

Also, the EV market is now more competitive than it was in the past. From falling sales volumes to lower profit margins, the EV maker is having a hard time.

Also, Tesla (TSLA) is losing its market share at a fast pace. If we look back, the company was not facing such issues at all.

With all things considered, it becomes clear that a market cap of $1.1 trillion is not realistic at all. In fact, the Tesla company shouldn't be worth that much at all when we look at other players in the car manufacturing sector.

So, the bottom line is that the Tesla (TSLA) stock is still overrated based on its P/E ratio. However, there are some investors who are still optimistic about Tesla.

For starters, Tesla is still a big name in the EV market and has a large distribution network. Also, Tesla has unique technology which makes it a leader in its space.

Also, the company is planning to sell trucks which will further expand its customer base in USA and other countries.

Also, the company has found a new fast growing business in the form of energy storage. Meanwhile, they are also exploring automated taxis, robotics, & other ways to earn more money.

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