Tesla’s latest quarterly results showed disappointing numbers, with profit, revenue, and margins all missing analyst expectations. The company’s sales growth outlook for 2025 was also lowered. However, instead of reacting negatively to the news, investors appeared to be swayed by Elon Musk’s optimistic tone on various new business ventures, including robotaxis, humanoid robots, and artificial intelligence. This “supercharged narrative” seems to be driving the stock up, with shares rising almost 3% despite the poor earnings report. JPMorgan analysts have noted that the stock is now “completely divorced from fundamentals,” suggesting a disconnect between Tesla’s financial performance and its market value.
Source: https://www.bloomberg.com/news/articles/2025-01-31/tesla-s-supercharged-narrative-shreds-stock-s-valuation-models