Tesla's 29% Decline Masks Persistent Valuation Extremes at 330x Earnings

Tesla's stock has shed nearly a third of its peak value, yet at 330 times trailing earnings it remains one of the most richly priced large companies in the world — a reminder that a falling price and a fair price are not the same thing. Beneath the headline decline lies a quieter story: earnings that have contracted for two consecutive years, margins compressed to near-nothing, and capital expenditures surging well ahead of any profits they might one day produce. The market is not pricing what Tesla is; it is pricing what Tesla must become — an outcome that would require a decade of nearly unb