Tesla posts weak earnings again, and the ‘Musk Magic’ Premium shows its shares are way overpriced

FortuneThursday, October 23, 2025 at 7:42:28 PM
Tesla posts weak earnings again, and the ‘Musk Magic’ Premium shows its shares are way overpriced
Tesla has reported disappointing earnings once again, raising concerns about the sustainability of its high market valuation, which is largely driven by investor confidence in Elon Musk's vision. This reliance on what some are calling the 'Musk Magic' has inflated Tesla's market value to an astonishing $1.35 trillion, but many analysts are questioning whether this premium is justified given the company's recent performance. This situation is significant as it could indicate a potential correction in Tesla's stock price if investor sentiment shifts.
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