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Tesla (TSLA) stock has fallen 29% from its record high but still trades at roughly 380 times earnings, keeping its valuation far above what current performance supports. Operating income has declined every year since peaking at $13.7 billion in 2022, reinforcing the gap between stock price expectations and earnings pressure. The article argues the stock remains overvalued despite the pullback.
Tesla (TSLA) shares have fallen 29% from their record high, yet the stock still trades at around 380 times earnings, according to an analysis published on fool.com.
Valuation Remains Elevated After Pullback
The article argues that despite the decline from its peak, Tesla’s valuation remains far above what current performance supports. At roughly 380 times earnings, the stock’s multiple stands out even after the latest slide.
Operating Income Declines
The analysis points to a weakening earnings trend as a key factor behind the valuation gap:
- Tesla’s operating income has dropped every year since peaking at $13.7 billion in 2022.
- The decline has continued through the most recent period covered by the article.
The Core Argument
The piece concludes that the stock is overvalued, citing the combination of a still-high earnings multiple and a multiyear decline in operating income. In the author’s view, the 29% pullback from the record high has not brought the share price in line with the company’s financial performance.
The article was published on fool.com and covers Tesla (TSLA).