Hyperdrive
Tesla’s Frenetic Rally Prompts a Valuation Reality Check
- Investors bet on AI promise, looking through EV weakness
- Shares drop quickly Thursday on news of robotaxi event delay
Tesla Inc. shares’ breathless rally hit a wall on Thursday on a report that the company might delay a crucial event that many investors have been pinning their hopes on. Yet even before that, it was already becoming harder to argue the case for the bulls.
The last time the company’s shares ran up like this, the rally was supported by revenue expanding at a double-digit clip. Things seem a lot gloomier now. The mood around electric cars is subdued, Tesla’s sales are shrinking and its profits are sagging.