This report is an updated version of the report published on 16 September 2025 at 9.08 AM PDT. 

Tesla, Inc. (NASDAQ: TSLA)

TSLA designs, develops, manufactures, sells and leases high-performance fully electric vehicles and energy generation and storage systems, and offers services related to its products.

Recommendation Rationale – SELL at USD 420.84 

• Financial Highlights: Total revenues declined to USD 22,496 in Q2FY25 vs USD 25,500mn in Q2FY24. This revenue was dropped due to a decline in automotive sales, fewer vehicle deliveries, and a reduction in revenue from regulatory credits. Net income also decreased to USD 1,190mn in Q2FY25 vs USD 1,416mn in Q2FY24.
• Trading Near the Resistance: TSLA stock has surpassed its R2 level recommended on 12 August 2025, with the 14-day RSI at 79.70 in overbought territory, raising the likelihood of a near-term pullback from profit-taking and risk of short-term consolidation or downside retracement.
• Overvalued Multiples: On a forward 12-month basis – key trading multiples (EV/Sales, EV/EBITDA, Price/Earnings, Price/Cash Flow, Price/Book,) are higher than Industry median of the Consumer Cyclicals Sector.
• Market Risk: The company’s long-term growth depends heavily on successfully commercializing self-driving technology and ride-hailing services, which face technical, regulatory, and market adoption hurdles.

TSLA’s Daily Price Chart

Valuation Methodology: P/CF Multiple Approach (FY Dec'25E) (Illustrative)

Stock might trade at a slight premium to its peers considering the expansion of autonomous and AI capabilities, production of the new Model Y ramped up across multiple factories, and other factors. For valuation, few peers including, Rivian Automotive Inc (NASDAQ: RIVN), Lithia Motors Inc (NYSE: LAD), Li Auto Inc (NASDAQ: LI), and other have been considered. 

Considering that the stock has surpassed its R2 level, rally in share price, current trading level, and risks associated, the share price can face consolidation at the current levels. Hence, a ‘Sell’ recommendation is given on the stock at the current market price of USD 420.84, as of 16 September 2025 (8:05 am PDT).

Tesla, Inc. (NASDAQ: TSLA) is a part of Global Fully Charged Portfolio.                   

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical issues prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing. 

Note 1: Past performance is neither an indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 16 September 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided have been achieved and is subject to the factors discussed above.

Note 4: Kalkine reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 25-30 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice. 

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.

Stop-loss: In general, it is a level to protect further losses in case of any unfavourable movement in the stock prices.