Tesla has been a dominant force in the electric vehicle (EV) market, but recent stumbles raise questions about its sky-high stock price. While sales haven’t reached the previously anticipated 50% annual growth, it remains a market leader. However, there are cracks in the facade.
Tesla’s ambitious goal of 50% annual sales growth appears increasingly hazy, raising concerns about its long-term viability. Doubts also plague Full Self-Driving (FSD) technology approach, with many questioning its feasibility in the foreseeable future. This confluence of factors casts a shadow over the seemingly unsustainable imbalance in company’s stock market valuation.
Despite these concerns, Tesla retains a strong believer base, particularly on Wall Street. This is evident in the staggering fact that it’s market capitalization surpasses that of the combined value of the next three biggest automakers – and you can even throw in major players like Hyundai or Kia, and Tesla still comes out on top.
The future of transportation, particularly with regards to AI-powered robotaxis and advanced robotics, remains shrouded in uncertainty. This very uncertainty fuels company’s allure.
Mowever, traditional carmakers are aggressively electrifying their fleets, investing heavily in research and development, and capitalizing on loyal customer bases.
We readily admits the possibility of being wrong, but currently we are feeling uneasy about the company’s future prospects. Unprecedented growth projections and reliance on unproven AI technology raise red flags. The data paints a concerning picture for those heavily invested in Tesla. While the future of transportation remains exciting, a potential crash for Tesla’s stock price looms large.
Reference- Clean Technica, The Wall Street Journal, Business Insider, Companiesmarketcap.com
