Quick Learning
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Tesla ( TSLA ) is trading at a much-expanded range despite declining revenue, with revenue down nearly 50%, with delivery growth of just 6%. Stellantis (STLA) has been maligned as a weak auto trade but there are many reasons to believe otherwise.
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Tesla’s valuation is based on robotaxi and Optimus promises predictive markets that give just 10.5% chance of the launch in California on June 30, while Stellantis has made a clean change that resets the strategy around customer demand for all electric, hybrid, and internal combustion vehicles.
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Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Stellantis didn’t make the cut. Pick up FREE words today.
Tesla (NASDAQ:TSLA) is dominating all financial feeds again after a one-month pullback of 15.22% to $433.59, fueled by the same robotaxi and Optimus narrative that has fueled the stock for years. But here’s what you should actually watch.
The Tesla Story Has a Quality Problem
Tesla trades at an estimated trailing P/E of 391 and forward P/E of 204, with an EV/EBITDA of 130. Remove the narrative and what you’re paying for falls apart. Revenue for the year 2025 decreased by 2.93%, net income decreased by 46.79%, and operating income decreased by 38.45%. Operating income decreased by 40.23% YoY in Q3 2025 and 42.49% in Q2 2025.
The Q1 2026 “beat” ($0.41 EPS vs. $0.3592) is dependent on one-time warrant and tax-related benefits, a $0.9 billion FX tailwind, and $380 million of non-new regulatory credits. Car deliveries grew just 6%, energy storage revenue fell 12%, and R&D rose to $1.95 billion to fund earlier AI promises. Prediction markets place the probability of the launch of the California robot on June 30 at 10.5% and the release of Optimus by the end of the year at 13.5%. That’s the math behind the $1.628 trillion market cap.
Take action now: the analyst who called NVIDIA in 2010 recently named his top 10 AI stocks — and Stellantis didn’t make the cut. Pick up FREE words today.
Contrarian case: Stellantis
Stellantis (NYSE:STLA) is a contrarian automaker. At $7.81 a share and a market cap of $22.05 billion, the parent of Jeep, Ram, Dodge, Chrysler, Fiat, Peugeot, and Maserati trades at a forward P/E of 9 and a price-to-book of less than 1. Here’s why the setup should be looked at closely.
1) The balance sheet is greater than the market cap. Stellantis ended Q1 2026 with $37.37 billion in cash and cash equivalents, which exceeded all equity. The board approved the buyback of up to 10% of the issued ordinary shares in an 18-month window at the AGM on April 14, 2026, and the management issued combined bonds of up to €5 billion to strengthen capital.
