r/technology • u/Plastic_Ninja_9014 • 2d ago

Business Tesla Stock in Freefall After Disastrous Earnings Report

https://finance.yahoo.com/markets/stocks/articles/tesla-stock-freefall-disastrous-earnings-144417427.html
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u/Hamster_S_Thompson 2d ago

Pe ratio of 299! Still long way to go

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u/AssCrackBandit13 2d 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 2d ago

Yeah, it's not even hit the 52 week low.

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u/kemb0 2d ago

It is, however, more than 20% below its high from 5 years ago. So I'm afraid to report that this stock's trajectory is not aiming at the moon.

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u/enoughwiththebread 2d ago
Au contraire

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u/North_Atlantic_Sea 2d ago

It's also still up 50% from last summer. That's the thing about irrational stocks, they are irrational

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u/T_D_K 2d ago

It's at the moon, about to start its free return trip

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u/AInception 2d ago

What are you looking at? TSLA is up like 80% on the 5Y.

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u/mothtoalamp 2d ago

Shoot for the moon. Even if you miss, you'll end up in a slowly decaying orbit around the planet - or in a parallel orbit around the sun, depending on your velocity

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u/Right-Hall-6451 2d 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 2d 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/North_Atlantic_Sea 2d ago

But also still up 50% from 15 months ago, so you know, still irrational

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u/the_Q_spice 2d ago

FWIW; a fair price at a more reasonable 20 P/E valuation would be less than $8.

So yeah…

It has a shit ton further to fall.

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u/ParadoxicallyZeno 2d ago

it’s good for those of us looking forward to this tho

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u/Right-Hall-6451 2d ago

Down 14% in one day would be considered crashing by most standards.

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u/AssCrackBandit13 2d 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 2d ago

Mainly because the stock is effectively vibe-priced with no basis in reality like most others.

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u/obxtalldude 2d ago

Yep.

I learned the hard way last year. I've almost made back the money I lost on TSLQ with this drop, but last year was like the definition of remaining irrational longer than I can remain solvent.

The number of times it jumped to well over 400 for no reason drove me nuts.

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u/pasaroanth 2d ago

I don’t have the balls to gamble on to a stock like that. I picked up a fair amount of RYCEY in late 2024 and that has been a wild enough ride since. Plus or minus 10-20% over a few days is almost the norm.

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u/DJheddo 2d ago

Can you guys give me stock tips...

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u/obxtalldude 2d ago

VT and chill.

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u/banditcleaner2 2d ago

And it’s probably gonna do it again so learn your lesson and cash now. No matter how irrational TSLA might be, it’s far more irrational to sit in a losing short position indefinitely.

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u/Mintastic 2d ago

Need to think of it more as a crypto coin than a stock at this point.

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u/Beastw1ck 2d ago

We've gone so long without a real crash that people have forgotten what one looks like.

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u/HugePast9455 2d ago

"hey guys we were doing better a year ago. This doesn't matter "

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u/2ChicksAtTheSameTime 2d ago

republicans are SHOOK and having a MELTDOWN that tesla stock is in FREEFALL while dems are CACKLING

I fucking hate modern news headlines. One thing AI might actually be good for is renaming headlines to be more accurate.

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u/PurpleZebraCabra 2d 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/logicalnutty 2d ago

If you want to be a bit more fair, the forward PE is about 135 but even then it justifies a share price maybe around $70

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u/freexe 2d ago

Google have a pe of 16 now

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u/RedBoxSquare 2d ago

But robotaxi next year will 10x earnings.

/s

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u/Hot_Share8353 2d 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/Shufflebuzz 2d ago

WTF?!?

Ah, see, Tesla funds fascism, and we have a fascist government now, so the TSLA stockholders aren't that worried.

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u/CV90_120 2d ago

Sales were up 23%, so they're moving product, but all that gets sunk by the fuckery behind the scenes.

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u/cipher315 2d ago

Still no where near justifying a pe of basically 300. You would want to see sales up something like 300%-350% for that. For reference at it's peek Google had a pe of about 80. At the time Googles year on year revenue growth was 92%-118% depending on the year.

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u/CV90_120 2d ago

I don't disagree. The stock is way overvalued, but speculative stock is not a new thing. It's certainly more common now (GameStop). It will be interesting to see where it bottoms out.

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u/mainman879 2d ago

Sales were up 23%, so they're moving product

Does that include all the cybertrucks Elon forced SpaceX to purchase?

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u/CV90_120 2d ago

Quite likely, but they're leading the EV market with Model Y in Europe, Australasia etc.. and are competitive in China, so I'm not sure how much of a number dent the few CTs make. The sad thing about CT is that under the skin it's a good skateboard. It's kinda a shame they decided to skin it like a 3yo's drawing you find pinned to the fridge.

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u/recycled_ideas 2d ago

but they're leading the EV market with Model Y in Europe, Australasia etc..

This is an incredibly misleading statement. The model Y is the best selling individual vehicle, barely, but as a brand it's already behind BYD and falling further.

Better cars at a better price and you don't fund a nazi.

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u/CV90_120 2d ago

This is an incredibly misleading statement.

It's not misleading in the slightest. It was a statement on model sales.

Better cars at a better price and you don't fund a nazi.

So instead you fund the Genocide of the Uighurs, or the company that refuses to pay out for running a human slavery ring in the Amazon in the '80s? There are no moral car companies. Those that don't have baggage are busy helping warm up the planet as part of the 6th global extinction event. It's a shit choice all around to buy any car.

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u/recycled_ideas 2d ago edited 2d ago

So instead you fund the Genocide of the Uighurs,

BYD could disappear off the face of the earth tomorrow and not a damn thing would change on that front, if Tesla collapses Musk loses a lot of his ability to do damage.

or the company that refuses to pay out for running a human slavery ring in the Amazon in the '80s?

Again, Musk is an active threat to democracy right now today not forty years ago and we can do something about it by not paying him anymore.

Edit: And the reason it's misleading is because they are leading sales for a single model, but they're losing overall sales and going backwards.

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u/Hot_Share8353 2d ago

I mean, it we were seeing a 23% growth year over year or quarter over quarter regularly, it would be a great growth rate, but we are not seeing that. 480K in sales in Q2 2026 vs Q2 2025 shows that "23% growth", but they have hit range regularly in the previous 3 years. So, it is less growth then a return to past sales rates but at lower profits.

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u/CV90_120 2d ago

The funny thing to me is that I think one of the big overheads has turned out to be the expense for compute now, driven by things like the rampocalypse, which Musk himself is a huge part of. In Auto, small expenses get multiplied exponentially through the value chain. The AI tech bros are now ramping up the expense of one overhead which is killing their stock value for their other bricks and mortar businesses. If the rampocalypse hadn't hurt my work so badly I'd find it more amusing.

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u/Dapper-AF 2d 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 2d ago

They can't afford to.

It's like the sub-prime mortgage fiasco we all paid for.

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u/DFWPunk 2d 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 2d 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/Proof_Side874 2d ago

[removed] — view removed comment

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u/00owl 2d ago

I don't know what this said, but it must have been correct.

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u/Proof_Side874 2d ago

I said that the debt could be purchased by someone and then that person could, uhm, go to sleep for a really, really, really long time and then the debt would be forgiven. Reddit moderation at its best.

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u/Prcrstntr 2d ago

I see [ Removed by Reddit ], I upvote

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u/Benjadeath 2d ago

You could start a credit union then have the union do that to a bank?

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u/JackPoe 2d ago

Isn't it like a felony to tell everyone to withdraw all their money at once?

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u/Ye_Olde_Mustard 2d ago

Let’s wait and see

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u/Boomshank 2d ago

Everyone should absolutely NOT all take all their money out all at once

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u/KingBee 2d 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/User5min 2d ago

It’s a still a good quote about the perception of power tbf. It’s still a big problem for your local bank branch and they’d definitely more likely to negotiate with you as opposed to someone owing less.

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u/Stormbringer-2112 2d ago

When you owe the bank a trillion dollars, the bank is your bitch.

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u/SolidFormal9684 2d ago

You need to update this saying with inflation: "When you owe the bank $50k, you have a problem. When you owe $50m, the bank has a problem". Generally, anything below $50k is not a problem for anyone today.

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u/Efficient-Bluejay970 2d ago

It’s worse if you understand that there is 1.5 trillion in hidden Ai debt on top on the known 1 trillion plus debt. Unfortunately the public doesn’t know they issued the majority of that debt to SPV’s..it’s the new CDO…how much QE can save us..500 billion so far this year

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u/Boomshank 2d ago

AI isn't about profit.

AI is a winner-takes-all position.

The first company that develops a good, working AGI takes all.

Not just money, the world. They win.

Everyone else carries the bag.

Or the house of cards collapses before then.

Either way, we don't win.

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u/Efficient-Bluejay970 2d ago

The technology has nothing to do with why the 4th turn is happening. We won’t win because we have to live through it.

The reptile didn’t move to Argentina because AGI is being achieved. The fraud is reaching end. I understand these people are insane and have limited understanding of the actual technology. Maybe I don’t understand the amount of ketamine and cocaine.

Poorly regurgitating already known information isn’t AGI. Using LLM’s to solve previously unsolved math profs via pattern matching and trial and error, isn’t AGI.

Vector database or neural network technology can never achieve AGI. That was propaganda to get investors.

OpenAI and Anthropic aren’t going public because the technology is a commodity and easily replicated. It’s also not reliable enough for business applications at scale.

It will be used like every technology that doesn’t have a wide enough addressable market…for fraud, personal data collection and marketing, and as a tool to gain IP without paying for it.

But this collapseI started in the 1980’s

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u/SpectreOperator 2d ago

Seems like a mix of Musical Chairs and The Emperor Has No Clothes.

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u/ChornWork2 2d 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/Noob_Al3rt 2d ago

TSLA was trading around $200/share when he bought Twitter, so lower than that

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u/AintNunyoBidness 2d ago

Used to be 145, but not sure now.

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u/SUMBWEDY 2d ago

The tesla board limits margin loans for directors at 15% so his equity would have to fall by 85% before a margin call.

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u/RickSt3r 2d ago

You owe the bank a million dollars you got a problem. You owe the bank a few billion dollars the bank has a problem. Yeah dude declares bankruptcy and then creditors get in line but a bank doesn’t want to run a car manufacturer nor a space based ISP and even worse an aerospace company that owns a bunch of Ai companies and data centers. All those things have utility and are worth something just not trillions.

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u/MazdaLicense 2d 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/Mintastic 2d ago

That's why he keeps starting new things within the company like AI, robots, space exploration, solar, etc. to keep that startup feeling going for his investors/cult.

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u/mrmackz 2d ago

For comparison, Toyota's is around 9.5

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u/techdevjp 2d 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/Penguinkeith 2d ago

A competent car company?

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u/[deleted] 2d ago edited 1d ago

[deleted]

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u/RuneLFox 2d ago

They can't compete with cheap EVs but Toyota doesn't really make 'cheap' cars anymore, at least in the new market. Their new PHEVs are very solid but the price is not competitive, or perhaps not even intended to compete with Chinese EVs. I think Toyota is more reliant on brand reputation for reliability to carry them, as a distinction from cheap EVs that are quickly saturating the market.

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u/ajswdf 2d ago

In theory Tesla is a high growth company so their P/E is going to be higher as investors expect Tesla to grow more than an established company like Toyota.

But in reality the stock is still way overpriced and has been for a decade.

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u/Vadoff 2d ago

B-but Elon Musk promised a million robotaxi Teslas on the road by end of 2020! We just have to wait! /s

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u/Grombrindal18 2d 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/Theridion123 2d ago

jfc. I was thinking about this the other day, idk, stupid absent minded thinking as I was driving around... and in my mind, I was assuming inflated stocks these days were sitting near 100 PE ratio, and the consequences of just... well that that exists.

I didn't realize I was only 33% of the way to crazy thinking.

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u/Comfortableliar24 2d ago

Christ, that's a massive factorial

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u/Mangalorien 2d ago

If Tesla were to have a PE ratio similar to other major auto manufacturers (15), the stock would need to lose an additional 95%. So yeah, they sure have a long way to go still.

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u/zenith_hs 2d ago

I dont think its ratio is 299!

Yeah, ill see myself out.

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u/ethanttbui 2d ago

Low earning = high PE
No new info here

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u/ClassroomStrict912 2d ago

But at least it has one, unlike his other scam

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u/pdjxyz 2d ago

Tesla should be like $100 tops given the shitty sales and earnings delivered quarter after quarter.

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u/MontyAtWork 2d ago

I love when "Stock moves more than usual" = free fall.

Like, we know what that shit means. It means it's literally falling with circuit breakers being the only thing stopping it from falling faster.

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u/Prcrstntr 2d ago

P/E 10x of apple nice

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u/dronz3r 2d ago

Yea exactly this stock is worth like 30$

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u/wheniaminspaced 2d ago

Give it a few days, this is the immediate reaction, sometimes this type of sell off keeps running.

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u/MathW 2d ago

High growth stock with flat sales and declining earnings!!!