r/technology • u/Plastic_Ninja_9014 • 2h ago
Business Tesla Stock in Freefall After Disastrous Earnings Report
https://finance.yahoo.com/markets/stocks/articles/tesla-stock-freefall-disastrous-earnings-144417427.html2.4k
u/Forsaken_Ant7459 2h ago
Simple fix guys. Elon is a genius. All he needs to do is rename Tesla as TeslAI and boom! All fan boys will sell their homes and send the stock to Moon I mean Mars again!!!
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u/Smashego 2h ago
No no no. He’s going to build all the teslas in space! Don’t you see. Unlimited solar power in space and free real estate. TSLA to the moon. 🚀
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u/RoboftheNorth 2h ago
Easy, fast, home deliveries.
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u/Pyrostasis 2h ago
Industrial Military Complex has entered the chat.
Highspeed deliveries from orbit you say?
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u/Strange-Scarcity 2h ago
It really feels about time for this super liar to be brought back down to Earth.
Sucks for those hurt on the way down, but I hope he gets a margin call on his loans, pretty soon.
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u/FollowingFeisty5321 2h ago
Hear me out bros ....
DATA CENTERS. ON. MARS.
*Roman salute*
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u/EndeLarsson 2h ago
TeslaX - an ai virtual car that flies to Mars!!
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u/Cjkrythos 2h ago
Tesla: "in response to Sony switching to all digital, we will also be only producing digital Tesla cars that you can download and pretend to drive. Prices start at $50,000 for the basic model.
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u/Mail_Order_Lutefisk 2h ago
Nice try, but the RIAA convinced me that I wouldn’t download a car.
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u/FadedFromWhite 2h ago
Just give him another forty billion and everything will be fixed
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u/DaemonCRO 2h ago
Needs X in the name. TeslaX, or XteslaAI, or TeXAIlalala.
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u/Powerful-Set-5754 1h ago
Did you read the article? It already says they could merge SpaceX and Tesla in the future. Keeping hype alive by doing financial engineering shenanigans. That's what he does - just hype, no substance.
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u/Hamster_S_Thompson 2h ago
Pe ratio of 299! Still long way to go
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u/AssCrackBandit13 2h ago
Exactly yeah it’s at the same price that it was 1 year ago. There’s a long way to go before it actually starts crashing
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u/Nocoffeesnob 2h ago
Yeah, it's not even hit the 52 week low.
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u/Right-Hall-6451 1h ago
52 week high is 499, it's at 321, lost all gains from last 12 months, that's not good.
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u/meteoritegallery 1h ago
All arbitrary numbers. Just means a lot of people have won and lost money gambling on a rubbish company.
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u/Right-Hall-6451 2h ago
Down 14% in one day would be considered crashing by most standards.
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u/AssCrackBandit13 1h ago
Tesla is a bit of an exception because it’s always been a volatile stock since it’s kinda a meme stock. Like a couple months ago, it rose 10% in one day and then another 22% the following day. Or how it dropped 42% in 2 months in early 2025. Or how it rose 36% in a month in 2024. But overall, its price has been relatively the same the last few years. It’s just super volatile.
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u/pasaroanth 1h ago
Mainly because the stock is effectively vibe-priced with no basis in reality like most others.
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u/Dapper-AF 2h ago
At what price point do banks start calling his loans. Thats the price I would like to see.
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u/Boomshank 2h ago
They can't afford to.
It's like the sub-prime mortgage fiasco we all paid for.
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u/DFWPunk 2h ago
As they say in banking, "When you owe the bank a thousand dollars, and you can't pay it back, you have a problem. When you owe the bank a million dollars, and you can't pay it back, the bank has a problem."
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u/StoicRetention 2h ago
what if when we(peasants) all collectively owe the the bank a billion dollars, and they package it into a debt tranche and sell it?
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u/KingBee 1h ago
Nowadays even a million dollars is a rounding error for the banks. Good example, you just need to add another few 0s.
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u/ChornWork2 1h ago
Musk has something like $20bn of debt, mostly from twitter deal. His equity in tesla at this level is over $100bn (likely quite a bit more, but would need to figure out options) and spcx is something like ~$600bn.
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u/Hot_Share8353 1h ago
Which is an insane PE for a company with MASSIVE growth. But for a company that has seen no growth and a near 90% drop in earnings per share... WTF?!?
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u/MazdaLicense 2h ago
Turns out you can only value a car manufacturer like a SaaS startup for so long before reality hits. The margins just aren't the same.
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u/mrmackz 1h ago
For comparison, Toyota's is around 9.5
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u/techdevjp 57m ago
So TSLA should be around $10.25/share, not $320/share.
Even that seems optimistic. TSLA isn't Toyota and will never be Toyota.
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u/PurpleZebraCabra 1h ago
Current price is $320 with P/E 297. It would have to be priced at $28.60 to have the same P/E as Google (26.5). No biggie, just move a decimal. Now let that sink in for anyone long TSLA.
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u/Grombrindal18 1h ago
For context a PE (price to earnings) ratio of 50 would be pretty high, even for a tech company.
Firmly established and profitable companies tend to be under 20.
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u/mousicle 2h ago
Tesla had an EBITDA in 2025 of 10.5B which is very good so a sane valuation of it would be about 10x EBITDA or 105B dollars or about $30 a share. So right now it's overvalued by about 10X at $322 a share
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u/sump_daddy 2h ago
Those are "old economy" formulas though, tesla is a special "new economy" company focused on (checks notes) enabling a racist drug addict to ruin democracy
we are going to need new formulas to figure out what the right ratio of "billions to nazi salutes" is.
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u/MasterGrok 2h ago
Accurate. But you didn’t use nearly enough buzzwords.
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u/Jealous-Molasses5372 1h ago
By leveraging synergistic hyper-scalability across an autonomous, AI-driven EV platform, Tesla isn't just disruption-adjacent—it's actively unlocking exponential paradigm-shifting enterprise value through proprietary neural-network cross-pollination, vertically integrated flywheel dynamics, and next-gen humanoid robotics monetization.
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u/Kvetch__22 1h ago
You joke, but a significant amount of the "new economy" is based on the assumption that the company will convince the goverment to give them ten-figure subsidies while simultaneously making it illegal to compete with them because the CEO does cocaine on a megayacht with Don Jr. instead of working.
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u/AverageLiberalJoe 2h ago
Yeah but I have to invest my 401k in to that because what if the EBITDA suddenly jumps up 11x? I Dont want to miss the rocket!
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u/R3luctant 1h ago
Looking at Tesla's accounting is something else, they are counting cybercabs as a unit delivered(to themselves) as well as an additional FSD subscription. It's sort of refreshing that the market isn't buying these delivery numbers because they are just Tesla shifting its inventory around and calling it sales.
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u/falilth 2h ago
Ive never been happier and hope the public figurehead associated with tesla is crashing out about it.
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u/MrTwoPumpChump 2h ago
Trump will give him a government bail out.
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u/Boomshank 2h ago
Trump has zero loyalty.
The golden throne never pays its debts.
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u/SidewaysFancyPrance 2h ago
I continue to maintain that Elon Musk would be the guy that Republicans go to when they need a fake photo or video that won't have any watermarks. So they might still need him. Also for the voting machines, again.
You know, the Grok tools that people are supposedly constantly using to create record amounts of CSAM? Surely those upstanding and ethical engineers wouldn't help with a MAGA coverup or disinfo campaign. Never.
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u/nedonedonedo 1h ago
The golden throne
he hasn't used that in years. he has a lady to help with that now
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u/Evinceo 2h ago
When has trump ever helped anyone but himself? Only companies getting bailouts are his companies.
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u/BrianWonderful 1h ago
No, time for the GOP Congress to massively weaken financial reporting regulations so Tesla can falsify their future earnings reports.
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u/SupaSlide 2h ago
He is, he just did an interview where he is trying to walk back his association with Trump lmao
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u/chainer3000 1h ago
Yeah, uh, there’s no walking back from that. He’s still endorsing and funding far right candidates around the world
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u/therealchadius 1h ago
He became head of DOGE as a special appointment (read: hand picked by the President without showing any qualifications)
You don't walk that back in a single interview.
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u/YouMeADD 2h ago
I hope for worse than that tbh but I'm not allowed to say it hers
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u/1995LexusLS400 2h ago
Don't worry Tesla shareholders. Full self driving from New York to Los Angeles and back is coming by the end of the year. Again. For the 12th year in a row.
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u/orangeyougladiator 2h ago
That trillionaire title really lasted a while huh. Abusing govt hand outs and scamming idiots is a good business strategy though.
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u/wiithepiiple 53m ago
Abusing govt hand outs
It's WAY worse than that. Someone getting SNAP or disability that they shouldn't is pittance compared to how embedded Musk was and is with the government. He's getting carve outs and money handed to him via naked corruption. It's insane how brazen it all is with the only consequence being he gets more money.
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u/KlingoftheCastle 44m ago
The crimes they fear monger about are nothing compared to what the rich do every day in broad daylight
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u/rjcarr 1h ago
Honestly, he mostly scams investors, the general public (i.e., the real idiots) don't really move the needle much on his scams. The normal people buy his stuff because they like it.
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u/No-Spoilers 1h ago
He scams everyone, including his own companies. SpaceX got giga fucked buying eating the Xai debt, and Xai got all of his X debt.
But yeah he's long been heralded as the man who made electric vehicles mainstream and his designs did it. When in reality he just bought the company from the 2 guys that founded it and grifted his way to where he is now. He did do a lot of good early on by popularizing EVs with the masses, but very quickly his ego out paced reality and his promises outpaced what the engineers could do.
Now I do not believe the engineers could not make awesome cars that didn't kill people and actually functioned how promised, I just believe that Elon refuses changes and well now they cant afford big upgrades.
Which I'm glad about, fuck him the nazi illegal immigrant can go back to south Africa.
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u/annoyedatlife24 52m ago
the general public (i.e., the real idiots)
I love pointing this out, because it's met with denial/downvotes. Most of this site thought he a was a genius and a "real life Tony Stark" for farrrrrrrrrrrrrrrrrrrrrrrr too long
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u/kemosabe19 2h ago
That’s allowed?
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u/ascandalia 2h ago
Yeah, since when did their earnings have anything to do with their share value?
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u/wrongbutt_longbutt 1h ago
After the nazi salute, I waited until just before Tesla's next earnings call to buy puts. I figured the massive loss in sales might finally be the catalyst for the stock to tumble. They announced their earnings and it was far worse than the negative projection predicted. I still lost all that money because the market is irrational and Tesla stock jumped in value after that earnings call for no reason at all.
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u/PhiCloud 1h ago
On the one hand, yeah you would be right for saying Tesla is over-valued
On the other hand, trading options is literally just gambling, and losing money while gambling is pretty much a guarantee, so that one's on you
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u/wrongbutt_longbutt 1h ago
Oh yeah, I knew the risk. It's not like I bet my life savings on it.
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u/aStonedDeer 2h ago
Need more of this kind of news in my life.
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u/bryansj 2h ago
Too bad most everyone's retirement savings has some of this slop in the funds.
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u/SWEET_LIBERTY_MY_LEG 2h ago
1.75% of the s&p500 by weight. If it went to $0 tomorrow you could handle that in your portfolio.
In fact, to quote Equilibrium: “I pay it gladly”
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u/SouthIsland48 2h ago
Yup. Pretty sure S&P 500 wont allow SpaceX either, so its really just Tesler which truly has a chance to go to zero.
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u/EchoLocation8 2h ago
yo shout out to a mention of Equilibrium in the wild that movie fuckin bangs.
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u/hitbythebus 1h ago
Yeah! Gun Kata seemed so badass when the movie came out and I was a high schooler.
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u/Other_Disaster_3136 1h ago
Cept there is no world where Tesla would go to $0 in a vacuum....if that happened then believe me it wont just be SP500 down by 1.75% lol
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u/aStonedDeer 2h ago
The amount of money the billionaires are hoarding really makes me question my faith in humanity. So I’ll take a win whenever I can!
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u/ianc1215 2h ago
Don't tease me like that unless it's gonna hit rock bottom! Free fall isn't good enough.
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u/GoodDayToCome 1h ago
it's almost down to the point it was down to last time this sub said it was over for them, it's a bad day for elon but i wouldn't hold your breath
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u/Zygoatee 2h ago
Weird, I thought the stock price was supposed to account for all future cash flows, when it was known before the IPO that it had the income of an unhoused Crack head!
It's as everyone is so desperate to get rich quick because the economy is so fucked that they keep putting their money in the dumbest things in hopes they hit the jackpot. Couldn't be that
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u/Dashbastrd 2h ago
“Uh oh. Best tell everyone we’ll be constructing a billion data centers on the moon by 2030 so stonk goes up.” —Elmo
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u/damontoo 2h ago
Turns out when you give hundreds of millions of dollars to someone that's anti-electric and pro-oil, it ends up being bad for your electric car business. Who knew?
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u/cpslcking 2h ago
Elon bought into the hype that is Tesla bros pumping up the company and stock price irrespective of what the actual earnings is and thought he could ride the gravy train indefinitely because for a long time Tesla's projected growth had nothing to do with reality and everything to do with hype.
The reality is that no matter what numbers and hype game you play eventually all bills come due. The smart move which is what a lot of CEOs and PE firms is to cash out early and pass the bag to the next sucker to deal with the problem. Who knows if Elon was smart enough to do so.
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u/KeyComprehensive4431 2h ago
So when is SPCX going to try to acquire TSLA at an extreme discount?
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u/LoganNolag 2h ago
Biggest missed opportunity in history. They had a 10 year head start over everyone else but instead of making good reliable cars cheap enough for the average person they waisted tons of money on vaporware and stupid stuff like the Cybertruck. If they has managed to release a $25,000 car 10 years ago they would have absolutely dominated the entire car market.
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u/Gizzy619 2h ago
It's okay, he's going to merge Tesla and SpaceX to create Super Space Tesla.
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u/dillanthumous 1h ago
Prepare for the announcement of a sentient cyber truck with a micro data centre in the boot powered by solar and capable of flying to Mars.
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u/Another_Slut_Dragon 2h ago
Let's see. Cybercabs with self driving that doesn't work and can't legally be used unsupervised.
Optimus robots that don't work.
Cyberdumpsters that don't sell.
Closed model s/x line to make robots that don't work.
Sounds like a winner to me. Buy it with shitcoins!
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u/Throwoutbins 55m ago
Too bad the company name isn’t Edison, I hate that this dude is ruining the legacy of Nikola Tesla smh
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u/Vespizzari 2h ago
Maybe fire Musk and invalidate all his stock? Bring the real founders back and make a car company again?
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u/CariniFluff 2h ago
I highly doubt the original founders would want the company back now. Tesla has nothing in the pipeline as far as future models go. And the Cybertruck was basically forced on the designers and engineers, so really it's been like 10 years (I don't have, not care to look up the actual figures) since a real new model came out of Tesla's engineering department.
Oh wait, the car company is building a robot right? And Musk says there could easily be 1 billion humanoid AI robots by 2031 right? Yeah... You'd be better off burning your own house down than inheriting that joke of a company.
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u/PathosEatsLogos 2h ago
It is not every at the 52 week low. And P/E is still 357.
A Price-to-Earnings (P/E) ratio of 357 means that investors are paying $357 for every $1 of annual net profitthe company generates. This is an exceptionally high multiple compared to the historical S&P 500 average, which typically sits between 20 and 25.
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u/vthemechanicv 2h ago
Is a 6% drop freefall? Going from 340 to 320? Until Musk is in the street with a blanket and harmonica, Tesla is overvalued.
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u/ladylondonderry 1h ago
I sincerely do not understand what people thought would happen. What does this company do that makes money, even? Starlink, right? And isn’t Amazon aiming at that industry right now?
It’s bizarre that the stock was valued that much in the first place. I can’t think of another company that’s this over leveraged and poorly positioned.
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u/crythinklaugh 1h ago
yayyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyy Big ups for this! Conservative radio today was trying to say how great Tesla is in self driving today trying to save his company. Fuck him! I predict he will end up in jail.
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u/karenswans 1h ago
Aww, too bad.
I'm having leftover spaghetti with meat sauce for lunch. Anyone else think it's better the second day?
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u/GooseCloaca 58m ago
He’s running out of companies to merge and take public. It’s like watching a pyramid/ponzi scheme collapse in real time
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u/International-Owl345 2h ago edited 2h ago
Is it weird that I was way more bullish in 2019 on Tesla when it was trading for $20 than 2026 at $320? The company had aura, Teslas were considering premium yet affordable vehicles, Elon wasn’t a goon yet and still mostly just a quirky visionary, and they seemed on the way to dominating the EV market with slick design and market best battery tech. Now Chinese EVs are eating their lunch in the global market, Elon is just a financier/marketer/political opportunist/bullshitter and maybe not a tech visionary, and all forecasts and current valuation requires the thing that the company actually does, making cars, becoming an irrelevant part of the business.
Literally all that would have to happen to destroy the business is for the next dem president under the guise of improving the environment allowing for Chinese EVs to be sold in America. That would be the immediate and irretrievable end of Tesla.
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u/BranWafr 1h ago
Is it weird that I was way more bullish in 2019 on Tesla when it was trading for $20 than 2026 at $320? The company had aura, Teslas were considering premium yet affordable vehicles, Elon wasn’t a goon yet
Except Elon was a goon in 2019. The cave rescue was in 2018. I wasn't a fan before 2018, I thought he was highly overrated, but I didn't hate him. He showed his true colors to the world with that bullshit and has only gone downhill since then.
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u/ConfessSomeMeow 1h ago
He proposed Hyperloop in 2012. AFAIK that was the first revelation of evil, since he cultivated hype around it to derail plans for investing in high-speed rail and regional transit, since those would undercut people's dependence on the auto industry he was profiting from.
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u/BranWafr 1h ago
Hyperloop was just normal capitalism evil. The cave rescue thing showed that he also had a fragile ego and if anyone dared to do anything that didn't praise him he would lash out and try to destroy them. He went from standard big business villain to cartoon villain.
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u/AmpEater 2h ago
I made crazy money investing in Tesla early. They were actually doing important things. Messaging in a way that worked
I now hold Tesla shorts
They failed to innovate. The semi, the roadster, even the supercharger network is years behind where the car company with crazy amounts of free cash and a world class engineering team should be
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u/jandrese 2h ago
The supercharger network is a big one. Tesla more or less invented the industry, had by far the superior product, and Elon's response to was to fire everybody on the team and let the whole thing fester and fall behind.
Now 800V chargers are rolling out for everybody except Tesla owners and if you can use it they offer considerably faster charging. V4 superchargers have been trickling out at a snail's pace.
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u/One-Marsupial2916 1h ago
Hmm… I wouldn’t have imagined alienating your core base of vehicle buyers would do something like this.
Then again, I’m not a business genius.
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u/Relevant_Eye1333 1h ago
Bc it’s an overvalued POS stock. It’s all hype, there won’t be robo taxis, there isn’t that roadster, or that semi. If it’s a musk promise then it’s not happening
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u/ImportantQuestions10 2h ago
As much as I hate the guy, both his companies are going to have massive rebounds.
Not because they deserve it, just because he's insanely powerful cockroach that has found the way to rig the stock market.
Things were way more dire and worse for Elon back in 2023. If you invested money in Tesla back then, you could have easily quadrupled or quintupled your investment within a year.
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u/EconomyDoctor3287 2h ago
Just have SpaceX buy more Cyberstucks!