Since Trump's victory, Tesla's stock price has risen 31%, and its market value has surged by $250 billion. This astonishing increase has prompted some Wall Street people to issue warnings, because Tesla's current stock price is 28% higher than the average analyst target price, the highest level since the post-epidemic tech stock boom in 2021. As of Tuesday's close, Tesla's price-to-earnings ratio was as high as 104 times future earnings, far higher than the median multiple of traditional automakers and the average of 32 times for the "Big 7 Tech Giants." Adam Sarhan, founder and CEO of 50 Park Investments, said he remains optimistic about Tesla's long-term prospects, but he still pointed out that "the market's reaction to Tesla after Trump's victory was explosive, and although the Trump administration may indeed bring some benefits, the current gains look a bit overheated in the short term."
"This round of gains looks unsustainable, even if you believe in the long-term growth story of the stock," said David Wagner, portfolio manager at Aptus Capital Advisors and a long-term Tesla investor. "This politicized 'Memeization' of Tesla's stock price is illogical." (Fortune)