Tesla Stock Takes 10% Post-Earnings Dive—Here’s Why Some Say Its $820 Billion Valuation Is ‘Disconnected From Reality’

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Tesla beat expectations for sales and profit last quarter but its stock remains “egregiously overvalued,” according to one bearish analyst.

Tesla stock slid Thursday after the electric vehicle company delivered an earnings report that largely exceeded headline expectations, as pessimistic warnings grow louder about whether the company’s recent 150% stock surge was warranted.Tesla’s $24.9 billion in sales and $0.

Tesla reported its lowest operating income since 2021 as vehicle profit margins slumped to a multiyear low of 18.1%, amplifying concerns about its ability to continue on its path of astronomical financial growth. Tesla’s price-to-earnings ratio , which tracks a company’s stock price compared to prior earnings and indicates how confident investors are about a company’s growth prospects, has exploded by more than 130% this year as the market largely cheers on boosted sentiments for tech stocks amid the artificial intelligence wave and a flurry of positive headlines for Tesla, including theBut neither AI nor charging expansion are “financially material for Tesla,” according to Bernstein analyst Toni...

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