Tesla’s Soaring Stock Puts Focus on Sales Outlook in Robot Shift

Core Insights - Tesla Inc. shares increased by 33% in September, driven by renewed investor confidence in CEO Elon Musk's focus on the company [1] - The stock had its best month in nearly a year, ranking among the top 10 performers in the S&P 500 Index, and has risen 100% since hitting a low in early April [2] - The market is betting on Musk's vision to transform Tesla from a car manufacturer into an AI powerhouse, as reflected in a proposed $1 trillion pay package for him [3] Sales and Market Performance - The stock is currently trading around $445, close to its all-time high of $479.86, raising questions about the upcoming third-quarter sales figures and potential peak in deliveries [4] - Analysts anticipate a surge in third-quarter EV sales as consumers rush to take advantage of expiring tax credits, but expect a significant slowdown in sales thereafter [6] - Concerns have been raised by industry leaders, including Ford's CEO, about a potential halving of US EV sales due to changing policies [7] Financial Outlook - Tesla's stock trades at a high multiple, with earnings shrinking amid declining EV demand and increasing competition, compounded by the expiration of EV credits [5] - A long-time Tesla investor suggests that the core business is valued at $150 per share, indicating that any premium paid is speculative on future developments like robotaxis [8]