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Tesla Q3 sees flat revenue, 56% drop in operating income, and halved EPS amid high valuation concerns

Company Fundamentals
22 Oct 2026
Seeking Alpha
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Bearish
Tesla Q3 sees flat revenue, 56% drop in operating income, and halved EPS amid high valuation concerns

Tesla reported flat revenue in Q3 with improved automotive margins but faced a 56% drop in operating income and a 50% decline in GAAP EPS. Despite some operational positives, Tesla's stock remains highly overvalued at 225 times trailing EPS, largely due to investor bets on future projects like robotaxis, Optimus robots, and a potential merger with SpaceX. The merger faces regulatory and valuation challenges, further disconnecting Tesla's stock price from its current business fundamentals. The analyst maintains a Sell rating, citing that the premium valuation is not justified by Tesla's current performance and delayed growth initiatives.

Tesla's stock trades at USD 371.44 on Pluang as of Oct 22, 2026 19:01 WIB, down 3.89% in the last day. Despite the article's focus on Tesla's overvaluation and operational challenges, Pluang investors show a strong sell sentiment with 76% of order activity leaning towards selling. The stock's market cap stands at $1.53 trillion, reflecting its massive scale even as growth initiatives face delays.

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