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To the editor: The recent rise in Tesla’s stock price, even as the company’s sales outlook has weakened, shows a worrying disconnect between Wall Street and the real state of its business (“Why are Tesla shares rising even as the outlook for its sales deflates?,” Jan. 27). While investors focus on future opportunities like autonomous vehicles and robotics, the core electric-vehicle business is showing slowing demand and weaker earnings prospects. Tesla’s forecasted profits have dropped sharply while its stock valuation keeps rising far beyond what traditional measures would justify.
This trend suggests that excitement and speculation are driving the market more than actual performance. Rewarding companies based on future dreams rather than present results risks creating bubbles that can harm everyday investors when reality catches up. Strong leadership and innovation matter, but they must be matched by solid sales and financial health.
True value does not come from hype. We should be cautious when stock prices climb despite clear signs of struggles in the underlying business.
Arav Mestry, Fremont