At this new all-time high, I'm not in a hurry to take profit. Tesla's share price has essentially spent a full year consolidating and digesting prior gains, and breaking into new highs is often a signal of a new trend phase, not the end of one. From a market-structure perspective, this looks more like the beginning of a re-rating rather than a terminal top.
The most critical assumption behind Tesla's valuation at this level is that autonomy is no longer a distant dream but a commercially viable platform. The fact that Tesla is testing robotaxis without human safety drivers materially changes the narrative. If autonomy scales even gradually, Tesla stops being priced as just an EV manufacturer and starts being valued as a mobility + software company, which supports a much higher multiple.
Another key assumption is operating leverage. As software and autonomy-related revenue increase, margins should expand meaningfully versus hardware-only car sales. I'm assuming Tesla can monetize its fleet over time—through robotaxi networks, FSD subscriptions, or fleet services—without proportionally higher costs. That margin expansion is what justifies staying invested through volatility.
I'm also focused on execution and time horizon, not short-term price fluctuations. Yes, $490 looks "expensive" if you anchor to old valuation models, but those models often fail at inflection points. When a company moves from proof-of-concept to early deployment, the market typically reprices first and debates fundamentals later.
So for me, this is a hold, not a trim. After waiting a year for Tesla to reclaim and surpass its highs, selling right at the breakout feels premature. As long as autonomy continues to progress and Tesla maintains its technology lead, I expect more upside ahead. I'm staying patient and holding tight.
$Direxion Daily TSLA Bull 1.5X Shares(TSLL)$
$GraniteShares 2x Long TSLA Daily ETF(TSLR)$
As a retail investor, I focus mainly on the US and Singapore markets, combining a mix of technical trading and long-term investing strategies. I enjoy analyzing charts, spotting patterns, and making calculated moves based on both market sentiment and fundamentals. While I'm not a professional, I treat my portfolio seriously and continue to learn and grow with each trade. If you're also navigating the markets and enjoy discussing stocks, options, or market trends, feel free to follow me. Let's learn and grow together as a community.
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