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Tesla's flying Roadster impresses but valuation and earnings quality raise concerns; Strong Sell rating maintained.

Company Fundamentals
16 Oct 2026
Seeking Alpha
View Source
Bearish
Tesla's flying Roadster impresses but valuation and earnings quality raise concerns; Strong Sell rating maintained.

Tesla's new flying Roadster showcases impressive technology but its commercial viability is uncertain, failing to justify Tesla's $1.4 trillion valuation. Despite Q3 vehicle deliveries beating expectations, automotive profit margins remain under pressure, casting doubt on earnings quality. Wall Street anticipates nearly $10 billion in negative free cash flow in the second half of 2026 as Tesla invests heavily in AI, robotaxi, and Optimus projects. Even with a potential tripling of adjusted earnings per share by 2029, current valuations suggest investors could still face losses, leading to a Strong Sell rating from the analyst.

Tesla shares trade at USD 353.27 on Pluang as of Oct 17, 2026 00:31 WIB, down 2.53% for the day and closer to its 52-week low of USD 298.16 than the high of USD 489.88. The stock's $1.43 trillion market cap slightly exceeds the article's $1.4 trillion valuation figure. Despite the negative sentiment in the news, Pluang order activity shows 70% buying interest, indicating some investor confidence amid the current price pullback.

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Tesla's flying Roadster may need a pilot's license and FAA approval before 2028 launch

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