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Tesla struggles with high valuation and thin margins despite record deliveries, raising doubts about its spending cycle.

Market News
05 Oct 2026
24/7 Wall Street
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Bearish
Tesla struggles with high valuation and thin margins despite record deliveries, raising doubts about its spending cycle.

Tesla, trading at $370.59, is the worst-performing stock among the Magnificent 7, down 17.6% year to date despite record vehicle deliveries and revenue growth. The company is heavily investing to transform into an autonomy, robotics, and AI chip firm, leading to collapsing operating margins and negative free cash flow. While deliveries and subscriptions grow, operating income fell sharply, and management expects rising capital expenditures for the next few years. The stock's high valuation leaves little room for error, with analysts offering modest upside and many rating it a Hold. The next earnings reports will be critical to see if margins improve and new business lines start generating revenue, which could reshape Tesla's outlook.

Tesla trades at USD 378.27 on Pluang as of Oct 06, 2026 00:01 WIB, showing a 1-day gain of 2.07%. Its market cap stands at $1.46 trillion, reflecting strong investor interest despite recent challenges. The stock's 52-week range is between $298.16 and $489.88, indicating significant volatility this year.

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