Tesla Stock Hasn’t Looked This Cheap in a While
Tesla Stock Hasn’t Looked This Cheap in a While

Quick Read

  • Tesla (TSLA) trades down 22% from all-time highs with a 353 times trailing P/E multiple.

  • Musk is pivoting Tesla from an electric vehicle company to a physical AI and robotics innovator, with success depending on whether Optimus robots achieve widespread workplace adoption and validate the valuation multiple by 2027-2028.

  • A recent study identified one single habit that doubled Americans’ retirement savings and moved retirement from dream, to reality. Read more here.

Tesla (NASDAQ:TSLA) isn't the only Mag Seven stock to think about buying after a brief plunge into bear market territory. With the AI trade coming back online over hopes that the war in Iran will be over in two or three weeks' time, perhaps the discounts across the board might not be sticking around for much longer, now that some of the hardest-hit names in March are showing signs of getting off the canvas.

At the time of this writing, shares of Tesla are still in a bear market, down just over 22% from its all-time highs. And while the name arguably remains the priciest of the Mag Seven based on its triple-digit price-to-earnings (P/E) multiple, it also might be the "cheapest" compared to the growth opportunity that lies ahead.

Undoubtedly, it all comes down to how you view the firm and its visionary leader, Elon Musk, as he looks to shift gears to ready for the age of robotics. If you see Tesla as just an electric vehicle (EV) company with sagging sales and a few uncertain physical AI moonshots, the current price sticker price looks quite obscene.

Read: Data Shows One Habit Doubles American’s Savings And Boosts Retirement

Most Americans drastically underestimate how much they need to retire and overestimate how prepared they are. But data shows that people with one habit have more than double the savings of those who don’t.

Even if you're a believer in Musk and the rise of the physical AI opportunity, the 353 times trailing P/E multiple may still seem too steep, especially when you consider uncertainties regarding when robotics will really take off. Like it or not, though, Musk is making bold moves to prove to the world that robots, rather than just EVs, are the future of Tesla, and that the technology is ready to disrupt new markets in the physical realm.

Tesla's swinging for the fences with robots and AI. It has to.

Any way you look at it, doubling down on Optimus, warehouse automation, and self-driving might be the only move to avoid a painful valuation reset, one that may see Tesla be repriced as an auto company, rather than a high-tech innovator at the bleeding-edge of AI.

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