Tesla (TSLA) Stock Movement Analysis: FSD News Impact and Conflicting Market Sentiments

On

, Tesla (TSLA) stock experienced a short-term price increase following a Melius Research recommendation calling it a “must own” due to advancements in Full Self-Driving (FSD) technology and CEO Elon Musk’s comments on AI chip progress. The news, linked to a Yahoo News article in a Reddit post, drove a in TSLA’s stock price over three trading days (2025-11-21 to 2025-11-24) [0]. The trading volume on the day of the news (2025-11-24) reached , exceeding the average volume of [0].

The positive news from Melius Research and Musk’s AI chip comments triggered a short-term upward movement in TSLA’s stock price. The

over three days (21-24 Nov) outperformed the Technology sector’s during the same period [0]. The increased trading volume indicates heightened investor interest in the news [0].

The Technology sector was among the least performing sectors on the latest available date (2025-11-27), with a

compared to Energy’s [0]. This suggests TSLA’s performance was driven by company-specific news rather than broader sector trends.

Metric	Value	Source
3-Day Price Gain (21-24 Nov)	+6.8%	[0]
5-Day Price Gain (21-26 Nov)	+9.07%	[0]
Trading Volume (24 Nov)	96.81M shares	[0]
Average Volume	89.82M shares	[0]
Market Capitalization	$1.37T	[0]
TTM P/E Ratio	224.52x	[0]
Sector Performance (Tech)	+0.15%	[0]

• High Valuation
  : Tesla’s P/E ratio of
  224.52x
  is significantly above industry averages, indicating the stock is priced for aggressive future growth [0].
• Volume Surge
  : The 7.78% increase in trading volume on 24 Nov signals strong investor reaction to the news [0].

1. Financial Performance
   : The inability to retrieve Tesla’s latest financial indicators (due to tool error) requires further research into revenue trends, profit margins, and debt levels to verify bearish claims of declining performance [0].
2. FSD Adoption
   : Data on FSD adoption rates and customer satisfaction is needed to assess the validity of overhyped claims [3].
3. Robotaxi Deployment
   : No concrete data on the actual deployment of Tesla’s robotaxi service (beyond demos) is available [0].

• FSD Competitiveness
  : Conflicting reports exist regarding FSD progress:
  • Forbes notes Waymo’s vehicles operate without human oversight, while Tesla’s FSD still requires driver supervision [1].
  • Bloomberg claims Tesla leads in self-driving technology [2].
• Industry Skepticism
  : Musk admitted no automakers have licensed Tesla’s FSD software, adding to concerns about the technology’s readiness [3].

1. Regulatory Approvals
   : Future FSD regulatory clearances for full autonomy.
2. Financial Results
   : Quarterly earnings to validate growth expectations.
3. Competitive Advancements
   : Progress from Waymo and Cruise in autonomous driving.
4. AI Chip Commercialization
   : Updates on Musk’s AI chip progress and market adoption.

1. Extreme Valuation
   : Tesla’s P/E ratio of
   224.52x
   suggests the stock is vulnerable to market corrections if growth expectations are not met [0].
2. Technology Uncertainty
   : Conflicting reports on FSD’s competitiveness relative to Waymo raise concerns about Tesla’s leadership in autonomous driving [1,2].
3. Lack of Industry Adoption
   : No automakers have licensed FSD software, indicating industry skepticism [3].

• Users should be aware that Tesla’s high valuation (224.52x P/E) may significantly impact the stock price if future growth fails to meet market expectations.
• This development raises concerns about the long-term viability of Tesla’s autonomous driving strategy, given conflicting reports on FSD progress and lack of industry adoption.
• Historical patterns suggest that stocks with such high P/E ratios typically experience greater volatility during market downturns, which users should factor into their analysis.