Fundamentals:
Tesla Inc. exhibits a mixed fundamental profile as of September 12, 2025. The company has a trailing P/E ratio of 208.83 and a forward P/E of 138.89, indicating high market expectations for future growth. The price-to-sales (P/S) ratio stands at 12.2, while the price-to-book (P/B) ratio is 14.64, both suggesting that the stock may be overvalued relative to its earnings and book value. Profitability metrics show a return on equity (ROE) of 8.18% and a profit margin of 6.34%, which are relatively modest for a high-growth company. Year-over-year changes in quarterly earnings and revenue are concerning, with earnings down 17.5% and revenue down 11.8%, indicating potential challenges in maintaining growth momentum.
Technicals:
From a technical perspective, Tesla's stock is currently trading at $346.97, slightly above its previous close of $346.40, reflecting a day change of 0.24%. The stock has shown a weekly increase of 4.10%, suggesting positive short-term momentum. It is trading above both its 50-day and 200-day moving averages, which is typically a bullish sign. The stock is currently 28.98% away from its 52-week high, indicating that it is not at a peak level. The average volume over the past 20 days is approximately 73.97 million shares, with a volume ratio of 0.72, suggesting that trading activity is below average. The momentum signal is bullish, which may indicate continued upward pressure on the stock price.
Overall:
Given the mixed fundamentals and strong technical indicators, the recommendation is to hold Tesla shares if already owned, while new investors may consider waiting for clearer signs of improved earnings growth and valuation normalization. The current high P/E ratios and declining year-over-year earnings and revenue suggest caution for long-term investors. However, the bullish technical posture may provide short-term trading opportunities for those looking to capitalize on momentum.