Tesla’s Stock Looks Extremely Overvalued, Here's Why

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$TSLA is currently trading at a P/E ratio of 388x, which is exceptionally high for any company—especially a mega-cap like Tesla. For comparison, most Mag7 companies usually have P/E ratios between 20x and 50x.

What does this mean? For Tesla’s stock to justify its current price, one of two things must happen:

i) Earnings growth must skyrocket.

ii) Stock price must correct significantly

Even though Tesla has historically maintained this high valuation, the risk of a major crash is real. You should be cautious and consider the potential downside before jumping in.

#RiskAssetsMarketShock #TeslaNews #tasla

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