Tesla (TSLA) Stock Movement Analysis: Melius 'Must Own' Call vs. Bearish Reddit Concerns on FSD and Valuation

On November 24, 2025 (EST), Tesla (TSLA) stock experienced an upward movement following a

calling it a ‘must own’ due to progress in Full Self-Driving (FSD) technology and CEO Elon Musk’s comments on AI chip development [1]. The report highlighted Tesla’s FSD v14.1.7 as a key advancement, citing its vision-only system and extensive training compute [1]. Concurrently, Musk emphasized Tesla’s long-standing AI chip engineering efforts, noting the deployment of millions of AI chips in cars and data centers, with the next-gen AI5 chip nearing tape-out [1]. This news led to a 3.88% gain in TSLA stock on November 24 [0].

However, Reddit discussions raised bearish concerns, including claims that FSD is overhyped compared to competitors like Waymo, declining financial performance, and that the stock jump was based on dubious news and repetitive narratives.

• Stock Performance
  : TSLA rose 3.88% on November 24 with elevated volume (96.81M shares, above the 10-day average of ~92.56M) [0].
• Sector Outperformance
  : Tesla outperformed its
  Consumer Cyclical sector
  , which was down 0.07% on the same period [0].

• 5-Day Gain
  : +6.03% (November 24–28) [0].
• 1-Month Volatility
  : -5.71% (indicating recent fluctuations before the event) [0].

• YTD Gain
  : +12.47% [0].
• 1-Year Gain
  : +28.14% [0].

The event temporarily shifted sentiment positive, but bearish concerns persist about valuation and execution risks.

Metric	Value
Current Price	$426.58
Market Cap	$1.37T
P/E Ratio	259.24x
Net Profit Margin	5.55%
ROE	6.97%
November24 Volume	96.81M
5-Day Change	+6.03%
1-Month Change	-5.71%

• Directly Impacted
  : Tesla (TSLA)
• Related Sectors
  : Auto manufacturers, AI/technology
• Upstream
  : Chip suppliers
• Downstream
  : Robotaxi services and mobility-as-a-service providers

1. FSD Competitive Comparison
   : Detailed progress of Waymo’s autonomous driving technology.
2. Complete Financials
   : Q3 2025 financial statements.
3. Execution Timeline
   : Updates on Optimus robot and robotaxi deployment.

• Bull Case
  : FSD as a transformative technology with multi-billion dollar potential [1].
• Bear Case
  : Overvaluation, unfulfilled promises, and narrative fatigue.

1. FSD adoption rates and regulatory approvals (e.g., Europe target: February 2026 [2]).
2. AI chip production milestones (AI5 chip rollout).
3. Q3 2025 financial results.

1. Overvaluation Risk
   : Tesla’s P/E ratio of
   259.24x
   significantly exceeds industry averages. Users should be aware this may lead to price volatility if growth expectations are not met [0].
2. Execution Risk
   : Bearish claims of unfulfilled promises raise concerns about Tesla’s ability to deliver on long-term goals.
3. Narrative Fatigue
   : Repeated positive news about FSD may lead to diminishing returns for future stock gains.

• Competitive Pressure
  : Waymo’s potential lead in autonomous driving could erode Tesla’s market position.
• Regulatory Uncertainty
  : Delays in FSD approvals may impact investor confidence [2].

: This analysis is for informational purposes only and does not constitute investment advice. Always conduct independent research before making financial decisions.