Is TSLA still undervalued?

**Tesla's valuation is a subject of ongoing debate among analysts**, with differing views on whether the current stock price reflects its true value or is inflated by market enthusiasm. 1. **Analyst Opinions and Price Targets**: - **Benchmark Reaffirms Top Pick Status**: Benchmark analyst Michael Legg has set a price target of $475, suggesting a significant upside potential from the current price. - **UBS Raises Target on Robotaxi Hype**: UBS analyst raises the target to $215, although maintains a Sell rating due to valuation concerns. - **Wedbush Analyst's Bullish Outlook**: Dan Ives expects Tesla to reach a $2 trillion valuation, not factoring in its Optimus project, highlighting the market's potential appreciation for Tesla's AI initiatives. 2. **Market Valuation Ratios**: - As of July 1, 2025, Tesla's Price-to-Earnings (P/E) ratio stands at 152.03, Price-to-Sales (P/S) ratio is 10.12, and Price-to-Book (P/B) ratio is 12.95. These high ratios suggest that the market is currently valuing Tesla's future earnings and growth prospects at a premium. 3. **Recent Developments and Future Prospects**: - The launch of the robotaxi pilot in Austin is a significant step for Tesla's autonomous driving ambitions. Analysts see this as a key factor in Tesla's potential for future growth, which could support higher valuation multiples. - However, UBS cautions that the market may have already priced in much of the upside from the robotaxi opportunity. 4. **Current Stock Performance**: - Tesla's stock has experienced a decline of 16.25% year-to-date but has seen a 51.37% increase over the past year. The recent 5.34% drop to $300.71 indicates volatility in the stock price. 5. **Conclusion**: While some analysts believe Tesla is undervalued based on its growth prospects, especially with the introduction of new technologies like robotaxi and Optimus, others argue that the current valuation is stretched and may be unsustainable. The wide range of price targets and the high P/E ratio suggest that the market is highly optimistic about