Tesla Pivots to Robots as Investors Question Sales and Soaring Valuation

September 12, 2025 at 5:45 AM EDT

Summary

Despite a bullish technical chart, Tesla, Inc.'s rally is fundamentally unjustified, prompting a continued Sell rating due to a major disconnect with its deteriorating business.
TSLA's Q2 earnings revealed a significant YoY drop in sales and profits, with ongoing margin compression from tariffs and a persistent EV price war.
The recent TSLA stock surge is a speculative bubble, driven by expiring tax credits pulling demand into Q3 and setting up a potential post-earnings sell-off.
Critical delays in the ramp-up of Tesla's lower-priced model and eroding market share in key regions undermine the company's long-term growth narrative.
As always, Tesla's valuation is dangerously stretched compared to historical averages, while the main upside risk relies on a speculative, long-term pivot to an unproven AI/robotics narrative.