Tesla (NASDAQ: TSLA) stock may be cheaper than it was at the start of the year, but it is hardly a bargain. In fact, compared to other automotive stocks, Tesla remains highly overvalued. This could be troublesome for investors in this stock down the road.
Hype surrounding Tesla’s potential artificial intelligence (AI) catalysts, including robotaxis, the Optimus project, and other possible AI-related endeavors, are helping the stock stay roughly between $300 and $350 per share. However, if the AI bubble bursts or if AI fails to strengthen an earnings recovery in 2026, a severe pullback could happen.
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