What Elon’s Tesla must achieve next year to match its valuation post-Trump
The post What Elon’s Tesla must achieve next year to match its valuation post-Trump appeared on BitcoinEthereumNews.com.
Tesla’s stock is on a ride so wild it could make Bitcoin blush. The company’s valuation sits at $1.4 trillion, placing it as the eighth most valuable business in the world. That’s higher than most countries’ GDP. But here’s the thing: Tesla’s forward price-to-earnings (P/E) ratio is 131.7. The S&P 500’s average? A mere 21.6. Analysts say to justify this nosebleed-level valuation in 2025, Tesla needs more than buzzwords and Elon Musk’s Twitter antics. It has to deliver actual results, starting with its long-touted robotaxi ambitions. Oh, and let’s not forget about its bread-and-butter business of selling EVs, which is under pressure like never before. Robotaxis or bust Tesla’s future rides on its ability to pull off the ultimate flex: a fleet of fully autonomous robotaxis. Elon gave the world a peek at Tesla’s robotaxi concept at the “We Robot” event in October, but it was more of a teaser trailer than blockbuster debut. The demonstration happened on Tesla’s own campus, and nobody knows if these cars can handle the real world—or just Tesla’s backyard. Stephen Gengaro from Stifel, though, sees hope. With Donald Trump back in the Oval Office, deregulation could smooth the path for Tesla’s self-driving tech. He said, “The reaction in the stock since the election is really coming out of this easier path to regulatory approvals and getting full, unsupervised [FSD] approved.” EV sales under pressure While Tesla’s stock flies high, its core EV business is feeling the heat. EV sales grew just 3.1% in the first nine months of 2024. For context, Tesla’s growth was 51.4% in 2022. That’s a nosedive. Analysts are still hopeful for an 18% rebound in 2025, but the road ahead is rocky. The Trump administration’s plan to cut the $7,500 federal EV tax credit isn’t helping. Goldman Sachs says scrapping…
