In fact, even since early last month, Tesla stock has soared 28%.

Could this be the start of a longer-term upwards move – and ought I to get aboard?

Tesla’s core car business faces growing competition

The past several years have presented multiple challenges for Tesla.

While headlines may focus on its boss and his impact on brand perceptions, what I see as the biggest challenge for the company is how its core marketplace is evolving.

The long-term demand trend for electric vehicles is unclear. Growth has slowed in many markets and the former belief that ultimately electric vehicles will dominate the market is now contested, even while high fuel prices due to the Middle Eastern conflict give demand a fillip.

What is clearer, though, is that however large this market ends up being, it will be tightly contested.

Chinese carmakers have been expanding globally. Indeed, BYD now leaves Tesla in the dust when it comes to sales volumes.

That remains a risk, although Tesla’s automotive revenues did show 16% year-on-year growth in the first quarter, on sales volumes up 6%. Still, Tesla’s car sales over the past several years have been very uneven and I see a risk that could continue.

Profitability problems

Meanwhile, competition and the end of US tax credits has been eating into the bottom line.

The first quarter showed year-on-year growth in net income but the bigger picture looks less positive to me. Last year’s net income (prepared using Generally Accepted Accounting Principles) was $3.8bn – a sharp fall from $7.1bn the prior year.

The first quarter figures help explain one reason Tesla stock has jumped lately, though my concern is that they represent a blip rather than a long-term trend given the competitive environment.

Cars are not Tesla’s only business but they are the main one.

The other sizeable one, energy generation and storage, saw year-on-year revenues decline 12% in the first quarter. That is not an encouraging trend.

Meanwhile, services and other revenue leapt in the first quarter, up by over two-fifths year on year. Bulls point to this as suggestive of the enormous potential of AI, including self-driving software, robotics, and driverless taxis to help propel Tesla’s revenues and earnings higher over time.

Here’s my concern

I am less convinced. Even more than electric vehicles, robotics is a crowded space and Tesla lacks the early commercial lead it had for electric vehicles.

Meanwhile, its AI and driverless taxi offering remains small scale. It remains to be seen whether it can be successfully commercialised at scale – again, in a crowded market.

Still, even recognising those risks, Tesla is profitable, with a large installed user base and lots of proprietary technology.

At the right price, I would happily own Tesla stock. But at over 400 times earnings right now, I see no fundamental reason to justify a higher price. Indeed, I think on fundamentals, it is badly overpriced.

I will not be buying. Instead I am scouring the market for other tech opportunities I think look much more attractively priced…

Should you invest £5,000 in Tesla right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Tesla made the list?

Christopher Ruane does not hold any position in the companies mentioned.

The post Up 28% in weeks, could Tesla stock go even higher? appeared first on The Twelfth Magpie.

Over the last 10 years, the index has delivered an average annualised return of 14.2%. But over the longer arc of history, the gains have been closer to 10%.

So if a 40-year-old started investing £500 a month today at this 10% rate and kept going for 25 years, what would they have by retirement?

The answer’s around £663,416. But, for investors willing to pick individual stocks rather than simply track the index, the numbers can look very different.

Tesla: a decade of extraordinary returns

Tesla‘s (NASDAQ:TSLA) perhaps the most vivid illustration of what successful stock-picking can deliver. Over the last 10 years, the electric vehicle (EV) pioneer has generated a staggering average annualised total return of 41.7%.

To put that in context, an investor drip feeding £500 a month into Tesla shares over this 10-year period is now sitting on £853,107. That’s more than a passive index investment is estimated to deliver in less than half the time.

But what’s driven such an extraordinary performance?

This phenomenal gain stems from Tesla’s unique position of being at the intersection of multiple transformational technologies simultaneously.

Over the past decade, the company’s gone from a niche luxury EV maker to one of the world’s dominant EV brands. At the same time, it’s built an EV charging infrastructure network, while also laying the groundwork for fully autonomous driving.

Combined, its Gigafactories, software-driven margin structure, and direct-to-consumer sales model created a business unlike anything that existed before in the automotive sector. And the market rewarded that novelty handsomely.

Is Tesla still worth buying in May?

The bull case for buying Tesla shares remains genuinely exciting. Institutional analysts have flagged Tesla’s autonomous driving and robotics ambitions as potentially capable of generating revenues that dwarf the existing car business.

This explosive growth potential is why Tesla shares trade at a substantial premium, with some projections expecting it to climb even higher to over $500.

Of course, lofty expectations leave little room for error. And despite achieving remarkable results over the last decade, signs of weakness are starting to emerge.

Tesla’s brand has taken a meaningful reputational hit in key markets following CEO Elon Musk’s foray into politics. When combined with increasingly fierce competition from Chinese EV manufacturers such as BYD, Tesla’s sales in key markets including Europe have softened.

Of course, none of this might matter if the firm’s venture into robotics plays out as expected. However, this too comes with significant execution risk. And delays to the timeline, paired with weakening EV sales, could leave Tesla stock vulnerable to a correction.

So what’s the verdict

The S&P 500 remains one of the most reliable wealth-building vehicles available to any investor. But Tesla’s decade of returns shows what’s possible when a truly transformational business gets the execution right.

Whether it can repeat that performance from here is the central question. Autonomous driving and robotics are very promising avenues for continued growth. However, with so much of this growth already baked into Tesla’s valuation, it isn’t a risk I’m personally willing to take right now. But it’s definitely a story I’ll be watching closely.

The post If at 40-years-old you put £500 a month into S&P 500 shares, here’s what you could have by retirement appeared first on The Twelfth Magpie.

In many ways the past year has been challenging for the company. Despite that, Tesla stock – already pricey a year ago – has risen another 50% over the past 12 months.

Could there be more to come – and ought I to buy some for my portfolio?

Tesla: more than cars?

The crux of the debate boils down to one question: what is Tesla, besides a carmaker?

That is not to understate the importance of the car business currently. Tesla shifted over 358,000 vehicles in the first quarter of this year. In the quarter, 73% of its revenues came from its automotive division, and many additional services revenues flow from it.

But while the automotive division is big business — $16bn of revenues in a single quarter – that hardly justifies the company’s $1.2trn market capitalisation in my view.

General Motors has a massive car business that sold more cars than Tesla in the quarter, but its market cap is $71bn. Ford, with its $51bn market cap, also outsold Tesla.

Car sales may grow over time, although the past year has seen mixed signals on that front in an increasingly competitive electric vehicle market. Car sales volumes in the first quarter did grow 6% year on year, but the overall sales trend for Tesla over the past year has been negative. Last year, volumes fell 9%.

The only way to justify that valuation, then, let alone a higher one, is the prospect of the business growing in other ways.

New possible avenues for growth

There is another big business Tesla already operates in: power generation and storage.

That generated $2.4bn of revenue in the first quarter. Alarmingly for a business seen as having strong growth prospects, that actually represented a 12% fall compared to the same quarter last year.

Beyond that, the company has a lot of other business ideas that could potentially grow big in future. They include self-driving vehicles, humanoid robotics, and AI.

Tesla has a credible claim to do well in each of these areas.

It has already gained relevant experience and skills for each through its car business. It has also demonstrated an impressive capacity to innovate, disrupt an existing sector, and ramp up sales massively in a short number of years.

Lots of ideas, but lots still to prove

However, just because it has done that before in the automotive space is no guarantee it will succeed in the new business areas.

While it has relevant skills, so do a lot of other companies. Some are already far ahead of Tesla in rolling out their businesses, notably in AI and self-driving taxis.

Tesla does not yet have a commercial business in these areas, let alone one that has proven profit potential.

If it gets there at scale, Tesla stock could yet soar. But with high costs involved and arguably no strong competitive advantage compared to some rivals, it might never get there.

So, for now, I see the stock as badly overpriced – and have no plans to invest.

The post Tesla stock’s up 50% in a year. Could it go even higher? appeared first on The Twelfth Magpie.

Oppenheimer’s Colin Rusch has warned that some investors may prioritise SpaceX shares over Tesla, which could distract from the stock. The shares are already down 28% from recent highs, so timing matters.

Yet the falling share price doesn’t seem to reflect performance. In Q1 2026, it delivered 358,023 vehicles globally and produced 408,386. Meanwhile, its US business sold 117,300 vehicles and took 54.2% of the American EV market, according to the latest reports.

Musk even mocked rival carmakers by asking, “what happened to all the Tesla killers?” after it outsold every other EV maker combined in the US market.

With so much conflicting data, what’s actually going on?

A sceptical market

Strong sales or not, the share price hasn’t had a great run lately. Tesla’s the worst-performing stock in the Magnificent Seven so far this year, which suggests investors aren’t convinced despite its market dominance.

Yet even with the fall, the stock still trades on a very rich valuation, with a price that’s hundreds of times higher than earnings. That leaves little room for disappointment if deliveries, margins, or investor sentiment soften.

Again, very conflicting data. Essentially, it was once so popular that it remains overvalued even after a months-long sell off.

Recovery potential?

The latest annual figures show why Tesla remains a polarising stock. In FY2025, it reported operating cash flow of $14.7bn, free cash flow of $6.2bn, and cash and investments of $44.1bn. Figures that give it a strong balance sheet and plenty of flexibility.

It also pays no dividend and is unlikely to anytime soon. Musk prefers to reinvest earnings into growth rather than distribute them. Still, for long-term investors, the bull case remains in place — it has scale, brand power, and a growing energy business. Plus, lower rates could help both car demand and valuation multiples over time.

The bear case is just as clear: the auto market’s cyclical, competition’s fierce, and Tesla’s valuation already prices in a lot of success that has not yet fully arrived.

So is it worth considering?

With Tesla looking increasingly like a high-risk growth bet rather than a comfortable long-term holding, I’m wary of considering it now. If the SpaceX IPO hype pulls attention and money away, the shares could stay volatile or drift lower in the near term.

Better options on the US market right now may be more fairly valued firms with clearer earnings and dividends, especially for investors who want steadier returns rather than a story stock.

A few I like the look of recently include HR software firm PayChex, snack giant Mondelez, and utility giant Duke Energy. They’re all very different to Tesla: fairly valued, low-risk, and income-oriented. Just the kind of things I look for when markets get wobbly. 

The post SpaceX’s IPO threatens to leave the Tesla share price on the forecourt appeared first on The Twelfth Magpie.

So, what’s going on here? And has the recent share price weakness created an opportunity?

A perfect storm of risks

Taking a look under the bonnet, there are actually multiple factors behind the recent drop in the stock. It seems Tesla has been hit by a perfect storm of risks this year.

For a start, operational performance has been poor. In the first quarter of 2026, for example, the company produced 50,000 more vehicles than it delivered (408,000 versus 358,000) – the widest gap in at least four years.

This suggests that demand for its EVs is weakening (intensifying competition, an ageing product line-up, reduced incentives, and political polarisation are some factors here). And demand could come under more pressure if high oil prices hit the economy – in a recession car sales tend to plummet as consumers hold off on large purchases.

Speaking of oil prices, if these remain high, they could also hit Tesla’s profit margins. Not only could the company find itself paying more for energy, but it could also see a rise in component costs (tyres, seats, dashboards, etc).

Another threat to profit margins is the company’s plan to develop a smaller, lower-cost EV. A smaller car may help it fend off competition from the likes of BYD and Volkswagen, but it’s likely to come at a cost in terms of profitability levels.

Market forces are hurting Tesla

Looking beyond operational performance, there are also several market forces impacting Tesla stock at the moment. Generally speaking, 2026 hasn’t been a great year for growth stocks so far.

This is especially true of growth stocks with high valuations and Tesla has a price-to-earnings (P/E) ratio of about 175. Investors just don’t have the appetite for these types of stocks right now.

Finally, one other issue that can’t be ignored is a potential SpaceX IPO. SpaceX is Tesla CEO Elon Musk’s space company.

I imagine that some investors are pulling their money out of Tesla in preparation for this IPO in the hope of making Tesla-like long-term gains. Note that Musk plans to open up this IPO to US retail investors in a big way.

An opportunity?

Is there an investment opportunity to consider here? I’m not convinced there is… yet.

In my view, the stock is still too expensive. Considering the level of competition Tesla is facing – not only in EVs but also in self-driving vehicles and humanoid robotics – a P/E ratio of 175 doesn’t make much sense to me.

It seems analysts at JP Morgan share my view. Right now they have an Underweight rating on the stock and a price target of $145 (about 60% below the current share price)

Now, I don’t know if Tesla will hit that price – it’s possibly a little too bearish given the company’s long-term potential in areas such as self-driving, robotics, and AI. But I do think there’s the possibility of further share price weakness in the near term, so I’m steering clear of this one for now and focusing on other opportunities in the market.

The post Why is Tesla stock down 30% since late 2025? appeared first on The Twelfth Magpie.

But has this secretly created an amazing buying opportunity for my portfolio?

What’s going on with Tesla?

Tesla’s currently being hit by multiple converging headwinds. Rising competition from rival EV manufactures, most notably BYD, is putting pressure on the firm’s pricing power and market share, most notably in China and Europe.

At the same time, CEO Elon Musk’s politically polarising involvement with the Trump administration has also resulted in brand damage and alienation of part of its ESG-oriented customer base – the impact of which has only been compounded by the loss of tax incentives in the US.

The result? First-quarter deliveries for 2026 missed analyst targets, falling close to 14% versus the last quarter of 2025, with 50,000 vehicles being added to unsold inventory. As such, a growing number of institutional investors have been heading for the exits. And yet, there are some notable exceptions.

American investor Cathie Wood is a notorious Tesla bull and has been using the recent share price weakness as an opportunity to buy even more shares. So what does she see that others don’t? And should I follow in her footsteps?

A hidden 7x growth opportunity

The bull case for Tesla among institutional bulls like Wood rests on a fundamental reframing of the business. Tesla isn’t just a carmaker – it’s a robotics and AI company.

Autonomous robotaxis and humanoid robots are expected to enter commercial production later this year. And Tesla’s positioning itself at the forefront of two brand new industries. And as the group’s historical track record shows, Tesla knows how to make the most of a first-mover advantage.

Combined, these markets present a new multi-trillion-dollar long-term opportunity for the business. And it’s why Wood’s placed a whopping $2,600 share price target by 2029 on Tesla stock. If she’s right, that’s a potential 657% return over the next three years – enough to turn £5,000 into a whopping £37,873!

Risk versus reward

This explosive potential comes with a huge caveat. Tesla’s discontinuing production of both its Model S and Model X EV models as of the second quarter of 2026. That will make room for the production of its Optimus robots. As such, Tesla’s effectively abandoning a premium spot in the EV market in favour of its new ventures.

Needless to say, voluntarily giving up market share in favour of a brand new, still-unproven technology is a big gamble that could backfire spectacularly if Optimus fails to live up to expectations. With that in mind, it isn’t surprising to see most institutional investors retreat.

There’s no denying the firm’s explosive potential. But even after the recent sell-off, the share price still trades at a premium valuation. This suggests some of this expected growth is already priced in. And that opens the door to even more volatility if the company fails to deliver.

That’s why, personally, I’m staying on the sidelines for now. But for those with a high risk tolerance and high conviction in Musk’s leadership and strategy, taking a nibble might be worth considering.

The post Prediction: by 2029, £5,000 invested in Tesla stock could be worth… appeared first on The Twelfth Magpie.

But with the EV pioneer valued above $1trn today, I think it’s fair to assume that Tesla returns will be far less dramatic in future. Investors have probably missed the battery-powered boat when it comes to life-changing gains there.

But what about NIO (NYSE:NIO)? The firm gets called the ‘Tesla of China’, owing to its similarities in the premium EV segment. In New York, it has a far lower $15bn market cap, and has just reported its first-ever quarterly profit.

Might this one emulate Tesla’s incredible wealth-making success?

Similarities

Up by around 110% in the past year, NIO stock has already made some savvy investors solid returns. But over five years, it’s still down by 83%, while Tesla has gained roughly 55% (both in US dollar terms).

Looking at NIO, I do see some similarities to Elon Musk’s EV firm. First off, they’re both very innovative, with NIO building out its own battery-swapping stations. There, subscribing customers can swap a battery for a new one in just three minutes on average.

February saw NIO achieve a milestone of 100m battery swaps. According to the firm, these have saved users a total of 83.41m hours, averaging over 88 hours per user, compared with conventional EV charging. 

There are now 3,790 NIO battery-swap stations worldwide, with around a third on major highways in China.

Interestingly, the company is opening up its network with other EV firms, which reminds me a little bit of Tesla opening up its Superchargers to rivals. Both were built to address range anxiety (still an obstacle to wider EV adoption).

Meanwhile, NIO has finally swung to a profit after years of losses (like Tesla). In Q4, it reported a net profit of RMB 282.7m (about $40m), a vast improvement on the year before. Revenue surged 75.9%, boosted by new and refreshed models.

Finally, NIO is big on AI, with its vehicles having a physical AI companion (NOMI) on the dashboard. Obviously Tesla is all-in when it comes to this technology (robotaxis, humanoid robots, and what not).

Differences

That said, I think AI gets to the heart of the difference between NIO and Tesla. The latter has always been valued on being more than an EV maker, especially today as it moves closer towards mass-manufacturing robotaxis and robots.

Also, back when these projects were still twinkles in Musk’s eye, Tesla had much of the EV market to itself. There was far less competition and its international growth was largely unimpeded, including in China.

In contrast, NIO is likely to face significant trade barriers in the US and Europe moving forward. And it’s likely to always be valued as an EV maker rather than transcending the category like Tesla has.

Another key difference is the discount that investors place on Chinese stocks because of geopolitical risk. At any point, Beijing can change the rules of the game, sending investors fleeing for the exit.

As such, I don’t see NIO as the next Tesla. The stock could still do well, especially if NIO becomes consistently profitable.

But neither is on my buy list today. I see better growth stocks elsewhere for my portfolio.

The post Is NIO stock the next Tesla? appeared first on The Twelfth Magpie.

But some believe there’s another threat to global equity prices, one that’s already starting to touch our lives. Could the rise of artificial intelligence (AI) really lead to a devastating stock market crash, or has the threat been exaggerated?

Doomsday?

One firm has outlined a scenario – not a prediction – in which machines replace a huge number of workers, unemployment soars, consumer spending weakens, the mortgage market goes into meltdown, and many banks collapse.

Nobody knows for sure whether the “human intelligence displacement spiral” as outlined by Citrini Research will become a reality. However, if it did, it expects the S&P 500 to fall 60% from its peak.

On the other hand…

However, I’m more positive. History shows that people and corporations have adapted to similar challenges before. It’s often said that we are starting a fourth industrial revolution. And to the credit of humankind, we’ve managed to survive the previous three.

There are loads of examples I could use to illustrate how life continues as normal in the face of radical change. Here are just two. In 1920, 1.19m people (10% of UK males) were employed in the coal industry. In 2025, it was 267. Despite this, we can still heat our homes and run a railway network.

And more recently, traditional high street retailers have overcome the threat of the internet. Yes, some have gone bust but many have survived by embracing the challenge.

As with nature, neither the strongest nor the most intelligent survives in the world of business. Instead, it’s the most adaptable. Remember, Netflix started life in 1998 as a DVD rental company. IBM used to make computers.

A visionary to invest in?

And Elon Musk probably thought he had joined a car company when he first became involved with Tesla (NASDAQ:TSLA) in early 2004. Now, as a great example of adapting to survive, it’s being repositioned as a robotaxi/robot/energy storage business.

Personally, I’m unconvinced that we need to replace taxi drivers. And will humans be stupid enough to let themselves be usurped by robots? I don’t think so.

But many people love Musk’s visionary approach, which — I suspect — is the primary reason why Tesla’s stock trades at an eye-wateringly high historic earnings multiple of over 300.

Of concern, vehicle sales are falling and inventories are growing in the face of intense competition from around the world and the phasing out of US tax credits.

Final thoughts

Of course, unlike the technological advances associated with previous revolutions, AI’s able to undertake both physical and mental tasks. It’s likely to be our toughest challenge yet. And inevitably, there will be lots of losers. But could Tesla be one of its winners? Probably. But there are no guarantees.

However, despite analysts reckoning the company’s 30% undervalued, the stock’s not for me. Investors appear to be placing huge value on some unproven technology.

Fortunately, for those of us looking to build long-term wealth via the stock market, there are plenty of other listed businesses that — I believe — have more chance of succeeding, including ones offering better value than Tesla. That’s why I remain optimistic.   

The post Could AI bring on the mother of all stock market crashes? appeared first on The Twelfth Magpie.

Tesla delivered 358,023 vehicles in the first quarter. That missed Wall Street expectations of around 365,000 by roughly 7,600 units.

That’s not a huge miss, but there’s an unpleasant detail buried in the figures as Tesla produced 408,386 vehicles during the same period. That means there’s over 50,000 cars built but unsold — a growing inventory pile that points to a demand problem, not a logistics hiccup.

So should investors care? Yes and no. The reason why is actually more interesting than the delivery numbers themselves.

Tesla: a car company?

If you’re trying to value Tesla as a car company, you’re already asking the wrong question. At least according to Elon Musk. The bull case for Tesla has almost nothing to do with how many Model Ys roll off the line in Fremont.

It’s about robotaxis, Optimus humanoid robots, and an energy business growing faster than the automotive division.

The fully autonomous robotaxi network — if it ever arrives at scale — would be a completely different business. This would be a software and services operation with margins that traditional automotive companies just can’t compete with.

Optimus, Tesla’s humanoid robot, is another high-potential project. In fact, Musk has suggested it could eventually be the company’s primary product.

And, of course, Tesla’s just part of Musk’s wider business empire. Musk wants to colonise the Moon and Mars — now in that order — and Tesla’s robots would be sent to into space, ahead of human populations, to start the colonisation process.

So there’s a space element too which not a lot of people realise yet.

Valuation disconnect

The problem is that the stock already prices in a great deal of that future — aggressively so. Tesla trades with a price-to-earnings ratio of 155 and price-to-earnings-to-growth (PEG) of 3.8. For context, Nvidia — the lynchpin of the artificial intelligence (AI) revolution and with many investments in robotics — trades at just 19 times earnings with a PEG of 0.5.

To justify the current price, you essentially have to believe the robotaxi network works, scales quickly, and isn’t regulated out of existence. You have to believe Optimus ships in volume. You have to believe Tesla keeps its software edge.

That might all happen — but it’s a lot to assume.

My bottom line

I love my Model Y. I genuinely admire what Tesla has built and believe it or not, I’m a Musk fan — he’s undoubtedly the greatest entrepreneur of his generation. However, I invest in obviously undervalued companies — ones where I don’t need a decade of perfect execution to make money. Tesla, right now, isn’t that.

It’s a fascinating company with a price that reflects extraordinary optimism. It might be worth considering, and I’m occasionally tempted, but there are other opportunities that better fit my strategy.

The post Tesla stock just got a little cheaper, but why? And should anyone care? appeared first on The Twelfth Magpie.

Right now, it’s fair to say that the growth stock is struggling. Here’s a look at how much £5,000 invested in Tesla on Christmas eve would be worth now.

Fast losses

On 24 December, Tesla’s share price ended the day at $485 (within a few percentage points of its all-time high). So, let’s say that an investor bought £5,000 worth of stock at that price (perhaps they got caught up in the hype as the stock raced higher).

Today, that money would now be worth about £4,100 as the share price has fallen significantly. Note that I’m factoring in GBP/USD exchange rates here – they’ve offset some of the losses.

What’s happened?

What’s gone wrong here for investors? A few things.

For a start, market conditions have changed dramatically. Back in late 2025, the market was flying and investors were very bullish on tech stocks. Today however, the market is under pressure due to geopolitical and economic uncertainty. Sentiment towards tech stocks (especially ones with high valuations like Tesla) has also cooled.

It’s worth pointing out that economic uncertainty is an issue for Tesla. Because if the economy takes a turn for the worse, it will almost certainly lead to a slowdown in car sales. During recessions, consumers tend to hold back on big purchases. So, Tesla’s electric vehicle (EV) sales are potentially at risk.

Another issue for the company is high oil prices. This is a problem for several reasons. First, car manufacturing is an energy-intensive process. Second, a lot of car components (dashboards, seat trims, tyres, etc) are petroleum based. Put these two factors together and the company could potentially be looking at much higher costs in the near term (and therefore lower profits).

Additionally, competitive pressures are rising. Today, there are lots of alternatives to a Tesla EV and companies like BYD and Volkswagen are capturing market share.

Finally, company results have been weak. For the fourth quarter of 2025, revenue was down 3% year on year (automotive revenue was down 11%) while non-GAAP earnings per share was down 17%.

Worth a look today?

Is the stock worth a look while it’s well off its highs? Well, it could be – history shows that it has recovered from pullbacks in the past (many times).

Note that the company still has plenty of long-term growth potential. Today, Tesla is not just an EV story. The narrative is about self-driving cars, humanoid robots, energy storage, and AI infrastructure.

Personally though, I won’t be buying. For me, the valuation is still too high – the forward-looking price-to-earnings (P/E) ratio is about 190 right now.

I could be interested in buying the stock at a later date. However, I want the P/E ratio to be well under 100.

The post £5,000 invested in Tesla stock on Christmas Eve is now worth… appeared first on The Twelfth Magpie.