Analyst Says Tesla (TSLA) Valuation Makes ‘Zero Sense’ Amid ‘Atrophying’ Fundamentals – ‘What Do You Own Here?’

Core Viewpoint - Analysts express skepticism about Tesla's valuation, suggesting it lacks rational basis amid declining fundamentals and increasing competition in the electric vehicle (EV) market [1][2][3] Company Performance - Tesla reported strong Q3 deliveries, attributed to pull-forward demand due to the expiration of EV tax credits, but the introduction of cheaper models did not impress the market [2][3] - The company is losing pricing power as competition intensifies, particularly from European and Chinese brands offering models priced under or near $30,000 [2][3] Market Competition - In 2024, Tesla's global deliveries are projected to decline for the first time, while competitors like BYD have reported an 800% increase in UK sales, outperforming Tesla in many European markets [3] - The introduction of budget models is expected to negatively impact Tesla's auto margins due to heightened competition [2][3] Future Developments - Tesla is progressing with its robotaxi business, which has been in development for over a decade, potentially transforming the automotive industry and creating new market opportunities [3][4] - The company plans to unveil new mass-market models in the upcoming quarter and is scaling production of its humanoid robot, contributing to its long-term growth narrative [4]