Tesla's Stock Soars Despite Plummeting Profit Outlook: A Wall Street Anomaly
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CNBC TV18•27-01-2026, 19:46
Tesla's Stock Soars Despite Plummeting Profit Outlook: A Wall Street Anomaly
- •Tesla's average 12-month price target has risen to $409.49 from $337.99 over the past year, even as its 2026 net income forecast tumbled 56% from $14.1 billion to $6.1 billion.
- •Analysts are increasingly skeptical of Tesla's near-term earnings potential, yet their stock price expectations continue to climb, a "very unusual" dynamic.
- •Tesla trades at over 195 times its expected earnings, making it the most expensive among the Magnificent Seven tech giants and second highest in the S&P 500 Index.
- •The stock's valuation is driven by CEO Elon Musk's vision for humanoid robots and driverless cars, rather than current EV sales or profitability.
- •Investors are keenly awaiting Musk's guidance on AI and robotics progress during the upcoming earnings report, as fundamentals weaken and car sales drop.
Why It Matters: Tesla's stock defies traditional valuation metrics, driven by future vision rather than current profits.
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