$Tesla Motors(TSLA)$ Kindly do your Own research. This is from research Tesla's stock has recently surged past $300, closing at $319.99 USD today, marking a 40% recovery from last month's lows and a return to a $1 trillion market capitalization . This rally is driven by favorable developments, including a de-escalation in U.S.-China trade tensions, which has led to a temporary reduction in tariffs
However, Tesla's stock is currently trading at a price-to-earnings (P/E) ratio of 133.8, making it the most expensive stock in the $1 trillion club by a wide margin . This high valuation is concerning, especially considering the company's earnings per share (EPS) have declined by 33.5% year-over-year.
Analysts have expressed caution, with JPMorgan warning that potential policy shifts under the new U.S. administration could threaten up to 40% of Tesla's profits due to the expiration of key government subsidies . Additionally, rising competition in the electric vehicle market and macroeconomic uncertainties pose further risks.
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