Tesla Stock Movement Analysis: Melius 'Must Own' Call vs Bearish Retail Sentiment

On November24,2025, Tesla (TSLA) stock experienced an intraday pop of nearly7% following Melius Research’s ‘must own’ call citing Full Self-Driving (FSD) progress and AI chip development [1]. CEO Elon Musk’s tweet on AI chip advancements reinforced this narrative [1]. The stock opened at $402.17, reached an intraday high of $421.72, and closed at $417.78 (+3.88%) with volume of96.81M shares (above recent averages) [0]. This movement reversed a prior week’s 3% drop amid AI bubble fears [1]. Retail sentiment (via Reddit) was bearish, highlighting FSD overhype, declining financial performance, and repetitive positive news [user input context].

Cross-domain connections: Tesla’s AI chip progress ties to FSD monetization potential, but retail investors question execution (unfulfilled Robotaxi/Optimus promises). The stock’s premium valuation (14x sales vs legacy automakers) contrasts with its 37% YoY EPS decline in Q32025, creating a valuation-sentiment disconnect.

: Financial (EPS decline, margin pressure), competitive (FSD deployment lag vs Waymo as per Reddit), valuation (premium multiple), execution (unmet product timelines). : AI chip leadership, energy storage growth (50% YoY in Q3), FSD revenue if deployed at scale.

Critical data: TSLA intraday7% pop on Nov242025 (close +3.88%), Q32025 revenue $28.095B (beat), EPS down37% YoY, record deliveries (497k units), market cap $1.37T. Sentiment is mixed, reflecting institutional bullishness vs retail bearishness.