"The bull thesis runs through AI, with FSD paid subscriptions reaching nearly 1.3 million in Q1 and unsupervised Robotaxi rides launching in Dallas and Houston."
"Q1 free cash flow rose 117.47% YoY to $1.44 billion, and EPS of $0.41 beat expectations by 14.14%, indicating strong financial performance."
"Trailing P/E is 357, forward P/E is 189x, and the internal AI model's fair-value target is $327.15, implying 15.98% downside."
"Full-year 2025 deliveries fell 9%, and energy storage revenue declined 12% YoY in Q1 2026, indicating a softening core business."
Tesla's stock has declined from a peak of $489.88 to below $400, raising questions about its future. The company is focusing on autonomy and robotics, with significant growth in FSD subscriptions and production plans for Optimus. Q1 2026 showed improved margins and cash flow, but the stock's valuation metrics suggest potential downside. The core automotive business is showing signs of weakness, with declining deliveries and revenue in energy storage, complicating the investment outlook.
Read at 24/7 Wall St.
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