Tesla’s stock has dropped by nearly half in three months. Even so, investors are still debating whether Elon Musk's electric-vehicle maker remains overpriced.
The company's market capitalization has dropped 45% since hitting an all-time high of $1.5 trillion on Dec. 17, erasing most of the gains the stock made after CEO Musk helped finance the election victory of U.S. President Donald Trump.
And yet Tesla continues to fetch a valuation far above those of the world’s biggest automotive and technology firms, judging by standard financial metrics. That’s because most investors and analysts have bought Musk’s pitch that the world’s most-valuable automaker isn’t really a car company at all, but rather an artificial-intelligence pioneer that will soon unleash a revolution in robotaxis and humanoid robots.
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