Tesla (TSLA) shares dropped by more than 2% to $419.60, as Barclays raised concerns about the company’s valuation outpacing its underlying fundamentals. In a recent report, the financial institution warned that the market’s enthusiasm for Tesla, particularly driven by the so-called “Musk premium,” is increasingly disconnected from the company’s financial performance. The bank pointed out that Tesla’s current valuation stands at an eye-popping 123 times its projected earnings for 2025, marking an all-time high for this premium.
Barclays also cautioned that the disconnect between Tesla’s soaring stock price and its earnings potential could eventually prompt investors to refocus on the company’s core financials. The bank’s forecast for Tesla’s 2025 vehicle deliveries stands at 1.95 million, a 9% year-over-year growth. However, this estimate falls short of both the market’s expectation of 2.08 million and Tesla’s own previously communicated range of 2.15 to 2.33 million vehicles.
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