SBGold said:
https://www.fool.com/investing/2026/01/06/tesla-just-delivered-very-bad-news-for-investors/
Another one of Goldilock's usual tales.
Since liberals started boycotting Tesla cars, the stock went down and ultimately has gone up above prior valuations. The bearish divergence occurred as the price made a higher high from December 2024 to December 2025. The delivery decline news reported was expected, and already had been built into the stock price. Not that Goldilcoks understands any of that.
For anyone following market fundamentals (which would not be Goldilocks), Tesla stock has been overvalued for a long time. Inattentive CEO, bad fundamentals, losing market share internationally to the Chinese, losing tax credits in the US, where Tesla has essentially a monopoly as Chinese products are effectively prohibited, etc.. Domestically, all EV cars (BEVs) face head winds due to lessening demand and loss of credits (only 15 states offer some form of credit on state taxes). In Europe, the focus still remains on plug-in PHEVs and hybrids which went up dramatically, and outside those markets the Chinse all electrics BEVs dominate, through Chines makers are moving away from those. Despite the commentary by many posters on this site, all electric EV (BEVs) cars are not at all dominating the car markets. The pace is the top buyer markets, the US and Europe, for BEVs stalled. Indeed BYD, the major player in all EVs, is moving more and more towards combined power PHEVs, a move Tesla is not following so far. The market appears to moving away from BEVs, and China seems willing to let Tesla dominate that declining market segment.
It is difficult to try to defend a stock with a triple-digit forward P/E ratio. The next earnings report is due late January, and given lower deliveries in Q4 mentioned in the article, that ratio could get worse. Sure, the company is a well-established BEV brand with a multiple-year track record of strong sales growth, and it has higher margins than its competitors. And yes, that probably is built into the stock price. It is pretty clear in the US Tesla will be the technology used to fill-up on the road, as evidenced by the German car makers adapting ports in new cars for Tesla chargers. And Tesla seems to be ahead in the driverless cars side, but is that really the future? Nevertheless, the current valuation seems too extreme at this point and is not sustainable. Famous last words, as I said that a while back, and the stock price went-up.