Tesla's Troubles Just Keep Mounting

Summary

• Tesla, Inc.'s valuation remains dangerously inflated, driven more by hype and Elon Musk’s futuristic vision than by financial fundamentals or core business performance.
• The company faces a deepening demand crisis, with delivery numbers consistently declining despite rapid growth in the broader EV market.
• Its financial health is deteriorating—revenue, net income, and cash flows are all down significantly—raising doubts about funding its ambitious projects.
• CEO Elon Musk’s increasingly polarizing political behavior is alienating both progressive and conservative audiences, damaging Tesla's brand equity.
• With sky-high multiples unsupported by growth or profitability, I maintain a Strong Sell rating on TSLA stock, barring a major leadership or brand reset.

I have covered Tesla, Inc. (NASDAQ:TSLA) a few times in the recent past, and have consistently made the argument for why I believe the stock is trading at incredibly overvalued levels. Despite this, the stock continues to, almost stubbornly, defy gravity, and is clearly

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.