TESLA'S TRILLION DOLLAR GAMBLE: ARE YOU BETTING ON THE RIGHT HORSE? — Quick Facts
Stock trades at 300+ P/E ratio while EV sales decline and competition intensifies. Robotaxi and FSD technology could unlock massive revenue but regulatory approval remains uncertain.
Key Data Points
- Stock trades at 300+ P/E ratio while EV sales decline and competition intensifies
- Robotaxi and FSD technology could unlock massive revenue but regulatory approval remains uncertain
- 2026 delivery numbers and autonomous driving progress will determine if current $1.5 trillion valuation is justified
Frequently Asked
- Why is Tesla changing Full Self-Driving from one-time purchase to subscription?
- Tesla stopped selling Full Self-Driving as a one-time $8,000 purchase after February 14th and switched to a $99 monthly subscription model as part of its transformation from an automaker to an AI company focused on autonomous driving revenue streams.
- When will Tesla's Cybercab production start?
- Tesla plans to start Cybercab production in April 2026, with the company targeting coast-to-coast autonomous driving deployment by late 2026.
- Is Tesla's $1.5 trillion valuation justified?
- Tesla's $1.5 trillion valuation depends heavily on 2026 delivery numbers and autonomous driving progress, as the company trades at a 300+ P/E ratio while facing declining EV sales and intensifying competition, with success contingent on robotaxi and FSD technology delivering promised revenue.
- How much cash does Tesla have for its autonomous driving bet?
- Tesla sits on $33.6 billion in cash and investments and achieved record free cash flow of $2.7 billion in Q3 with 233% year-over-year growth, providing substantial capital for autonomous vehicle development.
- What regulatory changes are helping Tesla's robotaxi plans?
- Regulatory barriers for autonomous vehicles are crumbling with proposed federal exemptions jumping from 2,500 to 90,000 steering-wheel-free vehicles annually, clearing the path for Tesla's unsupervised robotaxi testing in Austin and wider deployment plans.