Analyst Who Called Tesla (TSLA) a ‘Meme Stock’ Says Its Valuation is ‘Nonsensical’

Core Viewpoint - Tesla Inc is characterized as a "meme stonk" due to its valuation being driven more by retail investor enthusiasm than by fundamental financial metrics [1][2] Company Performance - Tesla reported strong Q3 deliveries, attributed to pull-forward demand from the expiration of EV tax credits, but the market reacted negatively to the announcement of cheaper models, indicating a loss of pricing power amid rising competition [3] - In 2024, Tesla's global deliveries are projected to decline for the first time, with a further expected decrease of 10% this year, while competitors like BYD have seen significant sales increases in the UK [4] Competitive Landscape - The introduction of budget models by Tesla is expected to negatively impact auto margins, facing stiff competition from European and Chinese brands offering vehicles priced under or near $30,000 [3] - Tesla's market position is challenged as BYD outperforms it in most European markets [4] Future Outlook - Tesla is advancing its robotaxi business, which could represent a transformative shift in the automotive industry, following years of development and substantial investment [4] - The company is also scaling production of its humanoid robot, adding a new growth dimension to its long-term strategy [5]