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Tesla's high valuation hinges on robotaxi success, but investor Steve Eisman remains skeptical.

Market News
18 Sep 2026
24/7 Wall Street
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Neutral
Tesla's high valuation hinges on robotaxi success, but investor Steve Eisman remains skeptical.

Investor Steve Eisman, known for predicting the 2008 housing crash, criticizes Tesla's valuation as excessively high unless one believes its robotaxi business will dominate globally. Tesla's 2026 price-to-earnings ratio is about 220, far above traditional automakers like GM at 6.5, despite Tesla's earnings per share forecast dropping 59% from its 2022 peak. Tesla's recent financials show revenue growth but declining profits and negative free cash flow, while its robotaxi service expands in several U.S. cities. Eisman contrasts this with GM's strong fundamentals and stock performance, suggesting GM's lower valuation is more justified. The key question remains whether Tesla's robotaxi network can grow fast enough to justify its premium valuation.

While skepticism surrounds Tesla's lofty valuation tied to its robotaxi ambitions, the stock remains resilient on Pluang, trading at USD 368.67 with a modest 0.72% gain as of September 18, 2026, 21:54 WIB. Tesla's market cap stands at $1.45 trillion, reflecting continued investor interest despite debates over its earnings outlook and premium price-to-earnings ratio. Typical investors hold Tesla shares for about 87 days, with current order activity showing more selling than buying at 68% versus 32%.

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