Is Tesla Stock Still Worth Buying at Current Premium Prices?

Core Viewpoint - Tesla's stock has faced significant volatility in 2025 due to factors such as slower electric vehicle demand, rising competition, and skepticism regarding Elon Musk's political commentary, yet investor excitement remains due to Musk's future-focused narrative [1][2]. Group 1: Stock Performance and Valuation - Despite the volatility, Tesla's stock has increased by over 33% in the past three months, driven more by long-term beliefs in transformative technologies than by current financial performance [2]. - Tesla's current valuation stands at 375.7 times forward earnings, reflecting high expectations with analysts predicting a 64.9% earnings growth in 2026 [6]. Group 2: Future Innovations and Risks - Tesla is exploring new business frontiers with innovations such as Full Self-Driving software, AI development, humanoid robots, and a robotaxi network, which could enhance its position across various industries [4]. - However, these ambitious projects are largely unproven, and there is a risk that focusing on them may divert attention from the core business of profitable EV production and sales [5]. Group 3: Autonomous Ride-Hailing Strategy - Tesla has launched its robotaxi service, which could significantly enhance its revenue model by reducing reliance on vehicle sales and generating recurring, high-margin income from mobility services [7].