Tesla (TSLA) Stock Movement Analysis: Melius 'Must Own' Call vs. Bearish Reddit Sentiment

On November24,2025, Tesla (TSLA) stock gained +3.88% to close at $417.78, driven by Melius Research labeling it a “must own” due to Full Self-Driving (FSD) and AI chip progress [3][4]. This gain outperformed the Technology sector’s +0.149% rise that day [2], with trading volume (96.81M shares) exceeding the recent average (90.21M) [1]. Bullish sentiment centers on Tesla’s autonomy and AI initiatives, while bearish sentiment from Reddit users highlights FSD overhype relative to Waymo, unfulfilled promises (e.g., Robotaxi deployment), and repetitive positive narratives [6]. Tesla’s valuation remains elevated at a P/E ratio of 224.52x, reflecting high market expectations for future growth from these initiatives [0].

Cross-domain connections include how Tesla’s stock performance is tightly linked to AI and autonomy advancements (Melius’ call on FSD/AI chips directly impacted price). A discrepancy exists between Reddit’s claim of a7% jump vs. actual intraday peak of ~4.86% and closing gain of +3.88% [1][6]. The EU regulator’s denial of Tesla’s FSD approval claim underscores regulatory risks that could hinder global rollout [5]. Critical info gaps include missing recent financial data (to validate declining performance claims) and detailed competitor data (Waymo’s FSD deployment scale) [6].

Risks include valuation risk (extremely high P/E ratio of224.52x, making the stock vulnerable to any underperformance in FSD/AI) [0], regulatory risk (EU denial and ongoing scrutiny in major markets) [5], execution risk (unfulfilled Robotaxi and FSD promises) [5][6], and competition risk (Waymo’s perceived lead in FSD) [6]. Opportunities exist if Tesla successfully deploys FSD at scale and gains regulatory approval, which could justify its valuation—though these are contingent on overcoming current hurdles.

This analysis covers Tesla’s stock movement on November24,2025, driven by Melius’ positive call. Key data points include a +3.88% gain, elevated volume, and a 224.52x P/E ratio. Sentiment is mixed, with conflicting views on FSD progress and valuation. Info gaps to monitor include financial performance, competitor comparisons, regulatory updates, and execution of autonomy-related promises. No investment recommendations are made; this summary provides context for decision-making.