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Tesla's Q3 shows weak financials despite tech advances; stock seen as overvalued with Sell rating.

Analyst Insights
21 Oct 2026
Seeking Alpha
View Source
Bearish
Tesla's Q3 shows weak financials despite tech advances; stock seen as overvalued with Sell rating.

Tesla's Q3 financial results were disappointing, with flat revenue, declining automotive sales, and a drop in operating margin to 2.6%, driven by rising R&D and stock-based compensation costs. While Tesla's technology demonstrations, including the Full Self-Driving (FSD) attach rate at 75% of new North American deliveries and initiatives like Optimus and Robotaxi, show promise, they remain unproven for large-scale profitability. The analyst maintains a Sell rating on Tesla stock, citing overvaluation and the need for concrete proof that these new ventures can justify the current high valuation.

Tesla shares are trading at USD 374.20 on Pluang as of Oct 22, 2026 07:11 WIB, showing a slight gain of 0.13% in the last day. The stock's market capitalization stands at $1.48 trillion, reflecting its significant size despite recent operational challenges. Pluang users have a typical hold time of 88 days for Tesla, with a majority of 76% currently selling the stock.

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