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Tesla faces downside risk despite Q1 rally due to weak demand and costly investments.

Analyst Insights
13 May 2026
Seeking Alpha
View Source
Bearish
pluang ai news

Tesla's recent Q1 rally was boosted by $900M in currency gains and one-time items, but underlying business issues remain. Margins have compressed and inventory buildup suggests weakening demand. Capital expenditures are expected to triple to $25 billion by 2026, leading to negative free cash flow for several years amid questionable returns on non-core projects. A valuation model estimates Tesla's intrinsic share value at $72.03, supporting a sell rating given lower growth prospects and high investment costs.

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