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Home » News » Tesla's Market Value is “Insane,” Say Veteran Investors

Tesla's Market Value is “Insane,” Say Veteran Investors

Wall Street sounds the alarm as Tesla’s valuation soars beyond fundamentals, sparking debate over hype, robotaxis, and the road ahead.

Editorial Team (ET)June 25, 2025



Tesla dazzled investors again this past weekend with the long-anticipated debut of its robotaxi service. The autonomous vehicles, gliding driverless through the streets of Austin, Texas, were supposed to be the latest proof of Elon Musk’s genius. But while the sleek visuals had fans celebrating, seasoned market strategists weren’t clapping. They were calculating—and what they see doesn’t add up.

Chad Morganlander of Washington Crossing Advisors summed it up in one word: insane. Not the tech, but the stock’s valuation. He points out that Tesla trades at ten times revenue and carries a forward price-to-earnings multiple of 178. That’s nearly nine times higher than the average S&P 500 company. “There’s a lot of jazz hands going on here,” Morganlander said on Yahoo Finance’s Opening Bid. “You look at that multiple and it’s hard to imagine them growing into that in any short period of time.”

He’s not alone in that assessment. As Tesla fans cheer the future, the fundamentals are flashing red. Tesla’s earnings per share forecasts for the next three years have collapsed, down by as much as 77 percent since late 2022. Meanwhile, the company’s dependence on government tax credits remains dangerously high. According to JPMorgan analyst Ryan Brinkman, federal subsidies now account for more than half of Tesla’s profit. And if those are eliminated by a Trump-led administration, Tesla could face a swift and painful margin reckoning.

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