Hyperdrive
Tesla Valuation Looks Unsustainable to Wall Street Analysts
- Across-the-board miss on results, cautious call spark concerns
- Shares sink 9.3% on Thursday to lowest since Aug. 18
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Tesla Inc.’s price cuts this year show customers are no longer willing to pay a premium for its vehicles. That raises a key question on Wall Street: Does its lofty stock-market valuation make sense anymore?
The immediate verdict after the electric-vehicle maker reported earnings was, not so much. The shares sank 9.3% to $220.11 in New York on Thursday, wiping out more than $70 billion in value.