Tesla’s stock has been soaring, but bulls are having a harder time defending its price. The last time the stock surged like this was on the back of two-digit revenue growth. Now, the mood seems much gloomier: sentiment around electric vehicles is wobbly, Tesla’s sales are shrinking, and profits are falling. As of Wednesday, Tesla’s stock had surged 44%, rising for 11 straight days, the longest streak since June 2023. Its current trading multiple is 90 times earnings, the highest since the start of 2022. Investors say the stock’s surge is because traders are not just betting on Tesla’s performance in electric vehicles, but on Musk’s ability to turn it into an AI factory. Investors expect that when Musk finally unveils Tesla’s highly anticipated self-driving technology, robotaxi, on August 8, the company’s lead in AI will be cemented.