Tesla, Inc. designs, develops, manufactures, leases, and sells electric vehicles, and energy generation and storage systems in the United States, China, and internationally. The company operates in two segments, Automotive, and Energy Generation and Storage. The Automotive segment offers electric vehicles, as well as sells automotive regulatory credits; and non-warranty after-sales vehicle, used vehicles, body shop and parts, supercharging, retail merchandise, and vehicle insurance services. This segment also provides sedans and sport utility vehicles through direct and used vehicle sales, a network of Tesla Superchargers, and in-app upgrades; purchase financing and leasing services; services for electric vehicles through its company-owned service locations and Tesla mobile service technicians; and vehicle limited warranties and extended service plans. The Energy Generation and Storage segment engages in the design, manufacture, installation, sale, and leasing of solar energy generation and energy storage products, and related services to residential, commercial, and industrial customers and utilities through its website, stores, and galleries, as well as through a network of channel partners; and provision of service and repairs to its energy product customers, including under warranty, as well as various financing options to its solar customers. The company was formerly known as Tesla Motors, Inc. and changed its name to Tesla, Inc. in February 2017. Tesla, Inc. was incorporated in 2003 and is headquartered in Austin, Texas.

Tesla has a strong balance sheet and very high liquidity, but its market valuation remains extremely demanding in terms of future growth. Cash on the balance sheet is substantial, the quick ratio and current ratio are comfortable, and debt/equity is low, which reduces the risk of financial stress. At the same time, long-term debt is rising, along with the burden on future earnings, although it does not yet appear critical. The main issue is the multiples: P/E, P/S, P/B, and P/FCF are many times higher than industry medians, leaving little margin of safety for investors. Against this backdrop, profitability looks weaker than the market: ROE, ROA, ROI, and return on tangible equity are noticeably below the median, and their trend over recent periods has deteriorated. Margins are also under pressure: gross margin, operating margin, and net profit margin are below industry benchmarks and have generally declined from stronger levels in previous periods. Absolute revenue and the company’s capital are growing, which supports the investment case, but earnings and operating income growth do not justify such a high valuation. EPS remains very low, and forecast EPS only partially improves the picture, without resolving questions about the quality of current earnings. The absence of dividends makes the story entirely dependent on growth and revaluation, without defensive income for shareholders. Overall, the fundamentals point not to deep business weakness, but to the market’s inflated expectations regarding future margins and earnings. Therefore, it would be appropriate to moderately lower the target price, while still acknowledging the strong balance sheet and scale of the business, but taking into account the weak current return on capital and the very expensive valuation.

Tesla, Inc.

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Слабый индекс, без изменений. Уверенность в своих позициях остается на низком уровне.

Weak index, flat. Confidence in their positions remains low.

Средний индекс, значительно вырос. Нейтральный рынок.

Medium index, significantly up. Neutral market.

Слабый индекс, значительно упал. Нейтральный рынок.

Weak index, significantly down. Neutral market.

Слабый индекс, незначительно вырос. Приток средств в лонги остается на невысоком уровне.

Weak index, slightly up. The inflow of funds into longs remains at a low level.

Слабый индекс, незначительно упал. Приток средств в шорты остается положительным.

Weak index, slightly down. The inflow of funds into shorts remains positive.

Tesla’s strong balance sheet and revenue growth are combined with a very expensive valuation and weak margins, so the target price should be moderately lowered.

Key Points
The stock is down more than 7% so far this year, but up from its IPO price.
SpaceX's 180-day lockout period ends in the fourth quarter.
The stock is overvalued relative to its peers.
Space Exploration Technologies (NASDAQ: SPCX) had a strong positive impact on space stocks when it debuted through an initial public offering (IPO) on June 12. SpaceX shares were priced at $135 per share for the IPO, but the stock opened that day to the public at $150. It reached an intraday high of $176.52 before closing at $160.95.
Overall, though, the stock is down more than 7% this year, unless you were fortunate enough to buy it at its IPO price. Here are three reasons why the stock could crash in the fourth quarter and one reason why it won't.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
The lockup period ends in the fourth quarter
SpaceX's IPO was structured with a staggered insider unlock schedule tied to time-based milestones, rather than the single lockup expiry used by many new stocks. That structure replaces the 180-day cliff with a series of dated releases, which keeps supply questions in front of investors for months rather than compressing them into a single expiration day. However, the 180-day lockup period will expire for all insider investors, except for CEO Elon Musk and a few select shareholders, in early December.
A deluge of people unloading their SpaceX shares could easily drive down the price and set off a selling frenzy. We already saw a little bit of that on Sept. 9, when some investors were able to sell in the 90-calendar-day unlock milestone. Though that period represented only 7% of the stock's shares, the price dropped from a midday high of $153 to close at $147.55.
Poor third-quarter earnings could spur investors to sell
SpaceX is expected to report third-quarter earnings in early November. In the second-quarter earnings release, the company reported revenue of $7.8 billion, up 92% year over year. However, it also had a net loss of $541 million and spent $28.5 billion on capital expenditures over the first six months, up 309% from the same period last year. The market didn't react well to those earnings. The stock, after closing at $125.33 on Aug. 4, just before the earnings announcement, opened at $108.27 on Aug. 5. It's easy to see how another less-than-spectacular third quarter could further drop the stock.
Despite strong top-line revenue from Starlink and launch services, SpaceX's aggressive expansion, particularly its massive infrastructure investments in Starship development and artificial intelligence (AI)/SpaceXAI compute clusters, has led to massive cash burn. The company posted a negative free cash flow of $13.8 billion for 2025 and continued significant burn through early 2026 as capital expenditures surged.
If credit conditions tighten or fourth-quarter capex spending estimates jump higher, Wall Street could reprice the stock downward to reflect its heavily delayed path to positive free cash flow.
SpaceX's valuation may come back down to earth
Because of Musk's popularity, the stock is trading at a high multiple. Since it isn't generating a profit yet, the best valuation indicator to use is its trailing price-to-sales ratio, which is 94.8. That's a massive premium to conventional defense, aerospace, and tech peers and leaves SpaceX little room for error. Any technical setback, delay in commercial Starship operations, slowdown in Starlink subscriber growth, or sudden volatility in high-priced cloud compute contracts, such as AI cluster hosting deals, could trigger a rapid valuation compression in the fourth quarter.
However, SpaceX has a huge integrated moat
For long-term investors, buying SpaceX is less a bet on aerospace launch and more an allocation to a vertically integrated global utility and compute infrastructure platform. The company has a near monopoly in several categories. Its Falcon 9 medium-lift rocket has a huge share of the global commercial market, with 684 missions. Its Dragon ship is the only operational U.S. spacecraft to ferry crews to and from the International Space Station. Its Starlink service is a global internet network with 6,750 satellites in orbit, serving more than 10 million customers across 160 markets.
Its Starship program, though still experimental, is scheduled for its 14th test flight, and represents the next step in launch scale and hardware use for the next decade.
SpaceX controls both rockets and satellites, and it is positioned to capture entirely new markets in defense and direct-to-cell connectivity, as well as to put data centers into space before peers can get off the ground.
Many investors place their faith in Musk
Investors view Musk through his ability to build category-defining, megacap companies, most notably Tesla, from early-stage concepts. Because Musk has repeatedly proven that he can scale complex engineering businesses past traditional industry limitations, institutional investors routinely apply a premium to his ventures compared to peers.
The market is judging the stock based on what it could do years from now, and while that's risky, it has paid off for early Tesla investors. They are betting that SpaceX's near-monopolies in rocket reusability and low Earth orbit will remain intact, and the company's first-mover advantage will continue to deliver record revenue.
Should you buy stock in Space Exploration Technologies right now?
Before you buy stock in Space Exploration Technologies, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Space Exploration Technologies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $417,413!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,341,294!*
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*Stock Advisor returns as of September 12, 2026.
James Halley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.

3 Reasons SpaceX Stock Could Crash in Q4 -- and 1 Reason It Won't

Key Points
Tesla closed at a record $695 on Dec. 18, 2020, and joined the S&P 500 at its full weight before the market opened the next trading day.
That closing price turned $10,000 into about $15,700 today, while an index fund would have grown the same money to about $20,500 before dividends.
Tesla's trailing-12-month revenue has more than tripled since 2020, yet the stock sits at more than 330 times earnings.
On Friday, Dec. 18, 2020, shares of electric-car maker Tesla (NASDAQ:TSLA) rose almost 6% to close at a record $695. More than 200 million shares changed hands that session (more than $131 billion of stock), making it one of the busiest trading days in the company's history.
The buying wasn't optional for everyone. S&P Dow Jones Indices had scheduled Tesla to join the S&P 500 (SNPINDEX:^GSPC) at its full weight before the market opened the following Monday. And the addition was based on that Friday's closing prices. In other words, every fund tracking the index effectively paid $695.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Nearly six years later, that $10,000 would have become about $15,700. The same money in an S&P 500 index fund would have grown to about $20,500 before dividends.
Image source: The Motley Fool.
Nearly six years later
Tesla has split its stock once since then (three for one, in August 2022), which turns that $695 closing price into $231.67 per today's share. A $10,000 purchase works out to about 43 of today's shares.
As of this writing, the stock trades at about $364, up 57% from the split-adjusted purchase price. But stretched across almost six years, 57% comes to about 8% a year.
The ride was better at times. The stock traded as high as $498.83 within the past year, a level that would have put the stake above $21,000. It hasn't held it.
The S&P 500, meanwhile, ended that Friday just above 3,700 and now sits close to 7,600 -- up about 105%, or about 13% a year. And dividends would widen the index's lead from there.
Tesla, for all the attention it gets, has trailed the very index it joined.
The reason isn't that the company failed to grow.
Did Tesla deliver?
The purchase valued Tesla at more than $658 billion, the largest addition in the S&P 500's history at the time.
In 2020, the company generated about $31.5 billion of revenue and $721 million of net income, its first profitable year. It produced and delivered about half a million vehicles. Against a price tag of more than $658 billion, the market was paying more than 900 times the year's earnings.
Much of the growth that price demanded did show up. Tesla's trailing-12-month revenue now tops $100 billion, more than triple 2020's total. Notably, the company delivered more than 480,000 vehicles in this year's second quarter alone, up 25% from a year earlier -- nearly as many as it delivered in all of 2020. Its energy storage business, tiny back then, deployed 13.5 gigawatt-hours in the quarter, a 41% jump from a year earlier. And net income over the past four quarters was about $3.8 billion, more than five times what the company earned in 2020, though well below the $12.6 billion it earned in 2022.
However, the stock still lost to the index, because years of that growth were already priced in at $695. Over that stretch, Tesla's price-to-earnings ratio compressed from more than 900 times earnings to more than 330 times earnings. I'd argue most of the company's growth went toward justifying the price index funds had already paid.
Today's price assumes another act
At more than 330 times earnings, today's buyer is arguably making the same purchase the index funds made in 2020 -- paying up front for growth that hasn't arrived yet.
This time, the growth is supposed to come from autonomy. Tesla, which says it is in "its largest and most exciting period of investment," now runs its Robotaxi ride-hailing service in seven major U.S. metros. And its steering-wheel-free Cybercab began carrying passengers in Austin this month, the same day federal regulators began an audit of the vehicle's certification.
That investment isn't free. The company's second-quarter revenue was up 26% year over year, but net income fell 5%, and the company's operating margin shrank to 1.4% from 4.1% a year earlier. Capital expenditures came in at $5.8 billion, more than double the year-ago figure, turning free cash flow negative.
Autonomy may yet deliver, of course, and if it does, today's earnings could look small in hindsight. But I think the 2020 purchase is a useful reminder that even impressive growth can lose to an index fund when the starting price already reflects it. I wouldn't buy shares at today's price expecting them to beat the market.
Don’t miss this second chance at a potentially lucrative opportunity
Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.
On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:
Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $567,509!*
Apple: if you invested $1,000 when we doubled down in 2008, you’d have $63,383!*
Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $417,413!*
Right now, we’re issuing “Double Down” alerts for three incredible companies, available when you join Stock Advisor, and there may not be another chance like this anytime soon.
*Stock Advisor returns as of September 12, 2026.
Daniel Sparks has clients with positions in Tesla. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.

$10,000 in Tesla When It Joined the S&P 500 Would Be About $15,700 Today. An Index Fund Would Have Done Better.

Key Points
Last year, Tesla shareholders approved a massive pay package for CEO Elon Musk.
Tesla must execute on one key growth initiative to reach that valuation.
Last year, Elon Musk secured a $1 trillion pay package for being CEO of Tesla (NASDAQ: TSLA). That pay package, however, won't be paid out all at once. Instead, Musk will have to hit certain incentive milestones to unlock his payday.
"Musk ... must drastically raise the electric car firm's market value over 10 years," notes the BBC. "If he does this and meets various targets, he will be rewarded with hundreds of millions of new shares." These new shares would be Musk's only compensation -- apart from the appreciation of his current ownership stake -- as he has elected to not take a salary.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
What, exactly, are the targets Musk needs to meet? The list includes:
The sale of 20 million Tesla vehicles
The sale of 1 million robots
Launching 1 million robotaxis
Generating $400 billion in profit
Pushing Tesla's market cap above $8.5 trillion
These targets are ambitious. But there's one key driver that, while likely not sufficient on its own to get Tesla's market cap to $8.5 trillion, should prove most valuable in the journey to reach that figure.
Here's how Tesla can reach a $8.5 trillion valuation
If Musk is unable to scale Tesla's robotaxi division, it seems very unlikely that an $8.5 trillion valuation will ever be attainable. It's not hard to see why that's the case, given how interrelated robotaxis are to the rest of Tesla's business.
First off, the robotaxi market is expected to be large in the long term. Some experts believe an $8 trillion to $10 trillion market could eventually form globally. That gives Tesla plenty of potential growth runway for its robotaxi division.
Nearly all of Tesla's vehicle models should be capable of participating in Tesla's robotaxi service. Tesla is hoping third parties will buy large blocks of vehicles to operate fleets of autonomous taxis. Tesla would presumedly take a cut of every ride as a service fee. Especially following the launch of its Cybercab -- a vehicle with no steering wheel or pedals, designed specifically to operate as a robotaxi -- Tesla's vehicle sales will increasingly be dominated by purchases intended to supply its robotaxi network.
Scaling robotaxis would therefore help Tesla not only hit its target of selling 1 million robotaxis but also meaningfully contribute to its broader target of reaching 20 million vehicle sales in total. Robotaxis should also have a higher margin than vehicle manufacturing, making the service critical for reaching Tesla's $400 billion profit target. And because all of these robotaxis will be subscribed to Tesla's self-driving software platform, they will also contribute meaningfully to the company's target of reaching 10 million self-driving subscriptions.
In all, the importance of robotaxis to Tesla's long-term growth cannot be overstated. Robotaxis, therefore, will also be critical for Musk to reach the incentives of his massive pay package.
I am very bullish on Tesla's ability to compete in the robotaxi market, though I do believe this market will mature later than many investors hope. Tesla's vertical integration should prove invaluable in scaling its service faster than the competition and at a lower cost. But expect most of this opportunity to spread itself over the next decade, not just the next couple of years, as Musk would like investors to believe.
Don’t miss this second chance at a potentially lucrative opportunity
Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.
On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:
Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $567,509!*
Apple: if you invested $1,000 when we doubled down in 2008, you’d have $63,383!*
Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $417,413!*
Right now, we’re issuing “Double Down” alerts for three incredible companies, available when you join Stock Advisor, and there may not be another chance like this anytime soon.
*Stock Advisor returns as of September 12, 2026.
Ryan Vanzo has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.

Elon Musk Needs Tesla to Reach a $8.5 Trillion Market Cap to Cash In. Here's How Tesla Can Reach That Valuation.

Key Points
Rivian dropped its profit guidance after ramping up investments in AI and autonomous tech.
Rivian's pivot sets the company up better for long-term growth.
For years, Rivian (NASDAQ: RIVN) marched closer and closer to profitability. Its progress on that front was impressive, given how difficult it is to scale a capital-intensive electric vehicle (EV) manufacturing business from scratch.
In the fourth quarter of 2024, Rivian posted positive gross margins for the first time in its history. Positive gross margins were generated in several subsequent quarters, leading many investors to believe that management's long-term guidance -- which called for positive adjusted EBITDA margins by 2027 -- would soon be realized.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
In March, however, Rivian's executive team quietly dropped the company's 2027 profit target. That might seem alarming, but the shift in priorities should ultimately set Rivian up for greater long-term success.
Here's why Rivian is better off after dropping its profit target
Tesla (NASDAQ: TSLA) proved it was possible to build an EV business from scratch while generating long-term, sustainable profits. Over the last three years, Tesla's stock price has risen by more than 50%. Yet Tesla's auto sales have actually declined for several years in a row.
Why is Tesla stock rising as its auto sales fall? Because investors realize that the future of EVs doesn't rely just on manufacturing. Success for EV makers also hinges on their ability to develop self-driving software. In the future, consumers will demand cars that are fully autonomous. Autonomous features will also be critical for selling into the quickly emerging robotaxi market. Tesla has invested aggressively in autonomous vehicles, and the market has rewarded it for its efforts.
Rivian has also invested aggressively in self-driving technologies. But it arguably remains far behind deep-pocketed competitors like Tesla. To sell EVs long term -- whether to consumers or robotaxi operators -- Rivian needed to accelerate its investments in autonomous driving tech. That's exactly what management decided to do earlier this year, when Rivian announced that it no longer expects to be profitable in 2027 "due to an expected increase in R&D spend associated with the acceleration of its autonomy roadmap."
Given how critical autonomous tech will be to Rivian's long-term future, investors should applaud the move.
Should you buy stock in Rivian Automotive right now?
Before you buy stock in Rivian Automotive, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Rivian Automotive wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $417,413!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,341,294!*
Now, it’s worth noting Stock Advisor’s total average return is 950% — a market-crushing outperformance compared to 210% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 12, 2026.
Ryan Vanzo has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.

Rivian Sacrificed Its 2027 Profit Target. Here's Why Investors Should Applaud.

Key Points
Nike's turnaround is progressing at a sluggish pace.
The current operating environment remains challenging, as Nike doesn't have a clear path to return to growth.
Alphabet replacing Verizon in the Dow makes Nike the lowest-weighted component.
S&P Global (NYSE: SPGI) announced that Nike (NYSE: NKE) will be removed from the S&P 100, effective Sept. 21, as part of its quarterly rebalancing. Honeywell Aerospace, Simon Property Group, and Colgate-Palmolive will also be removed, while Dell Technologies, Palo Alto Networks, Arista Networks, and Sandisk will be added.
Here's why Nike is being removed from the S&P 100, whether it presents an ominous warning for its potential deletion from the Dow Jones Industrial Average (DJINDICES: ^DJI), and whether the blue chip dividend stock is a good buy now.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Justifying Nike's S&P 100 removal
The S&P 100 isn't the 100 largest S&P 500 (SNPINDEX: ^GSPC) components by market cap. Rather, it's a curated sector that represents blue chip companies across stock market sectors and industries with a focus on megacap and large-cap behemoths.
Nike has remained in the index due to its industry leadership, not its size. Nike is now the 213th-highest-weighted company in the S&P 500. It's also the lowest-ranked component in the iShares S&P 500 100 ETF -- which uses the S&P 100 as a benchmark.
Nike's removal makes sense given that its stock price continues to fall and its industry leadership isn't what it used to be. What's more, Dell, Palo Alto, Arista, and Sandisk have all gone up so much that they are all in the top 50 in S&P 500 components by market cap. Nike's industry leadership premium no longer justifies its inclusion in the S&P 100 over companies that are worth several times more and contributing to the S&P 500's gains, whereas Nike has been a drag on the index.
As you can see in the chart, Nike is at its lowest level in more than a decade, with revenue and earnings down in recent years and operating margins plummeting from the low- to mid-high teens pre-pandemic to under 9% today. There's a laundry list of issues at Nike, including supply chain and corporate strategy blunders, slowing growth in China, tariffs, domestic consumer spending pressures, and increased competition from formidable rivals.
Even with these issues, it's important to remember that investors care more about where a company could be headed than where it has been. Investors may take one glance at the stock's price action and assume Nike is a no-brainer buy. But Nike hasn't returned to growth, and its runway for doing so is shrouded in dense uncertainty.
As part of its Win Now turnaround plan, Nike has implemented cost cuts and changed its strategy to better balance wholesale and direct-to-consumer. For fiscal 2026, which ended on May 31, wholesale revenue grew 4% year over year, with double-digit growth in North America. But many of the challenges that weighed on the business remain -- namely, competition, current operating trends in consumer discretionary spending, and the China slowdown.
Better Dow candidates
With Alphabet replacing Verizon Communications in the Dow this past June, Nike is now the lowest-ranked component in the price-weighted index -- putting it on the hot seat for the next stock most likely to be replaced. With just 30 components, the Dow is more exclusive than the S&P 100, Nasdaq-100, or the S&P 500. The Dow has become increasingly tech-stock-focused in recent years to reflect the evolving economy -- adding Nvidia and Amazon in 2024, and now Alphabet this year. However, there are massive companies that could muscle their way into the Dow, such as Broadcom, Meta Platforms, Tesla, Space Exploration Technologies, or maybe even Tesla and SpaceX combined if they merge.
Although the Dow has traditionally included industry-leading dividend-paying companies, the dividend-paying aspect of the criteria seems to carry less weight today than in years past, as Alphabet and Nvidia both yield less than 0.5%, and Amazon doesn't even pay a dividend.
Nike has raised its dividend for 24 consecutive years and yields a sizable 4.3%. But that payout could be under pressure if Nike's dividend expense begins to absorb too much of its free cash flow.
Nike will be removed from the Dow
Nike could be a good buy for investors who are confident in its brands and management's ability to execute a successful turnaround. And if the broader stock market were selling off, perhaps Nike would be given more grace.
But the major indexes, including the S&P 500 and the Dow, are hovering around all-time highs -- shortening the leash for underperforming stocks like Nike, especially now that it is closer to the median S&P 500 component weight and makes up a mere 0.4% of the Dow.
At this point, I think it's only a matter of time before Nike is removed from the storied Dow Jones index. And most investors may be better off waiting for concrete signals of a sustained turnaround before buying the stock.
Should you buy stock in Nike right now?
Before you buy stock in Nike, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nike wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $409,917!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,341,724!*
Now, it’s worth noting Stock Advisor’s total average return is 942% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 12, 2026.
Daniel Foelber has positions in Broadcom, Nike, and Nvidia. The Motley Fool has positions in and recommends Alphabet, Amazon, Arista Networks, Broadcom, Colgate-Palmolive, Honeywell Aerospace, Meta Platforms, Nike, Nvidia, S&P Global, and Tesla. The Motley Fool recommends Palo Alto Networks and Verizon Communications. The Motley Fool has a disclosure policy.

Nike Is Being Deleted From the S&P 100. Is Its Seat in the Dow Jones Industrial Average in Jeopardy?

Key Points
Burry's concerns about leverage are valid. Investors have been happily ramping up their margins, while leveraged ETFs add additional debt to the market.
His bearishness on AI stocks doesn't make as much sense. Strong fundamentals, multiyear tailwinds, and rising profit margins do not bode well for the bearish thesis.
Burry has made several bad calls, especially for long-term investors. It's important to note that Burry often uses puts, which are short-term in nature.
Michael Burry, famous for his depiction in The Big Short, has set his eyes on artificial intelligence (AI) stocks. He's short Nvidia (NASDAQ: NVDA), Palantir (NASDAQ: PLTR), and Tesla (NASDAQ: TSLA) and sees the AI bubble leading to a "1987-type fall."
Writing in his Substack newsletter, Burry recently brought up a valid point about leverage, but his concerns about an AI bubble are vastly overblown. Here's what investors should know.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Leverage is a concern for people who need money soon
Burry noted that a rising stock market forces certain funds to go deeper into leverage. For instance, the GraniteShares 2x Long NVDA Daily ETF (NASDAQ: NVDL) is forced to buy more shares of Nvidia as the chipmaker rallies.
It's not just these funds, either. Margin investing is hot, and the total margin debt increased by 50% year over year in June. That type of leverage accelerates rallies but can lead to harsh, sudden crashes.
The risk of that level of margin was put on full display when Leopold Aschenbrenner's highly leveraged Situation Awareness hedge fund was liquidated due to declining stock prices. The fund had high-leverage bets on hot AI stocks. While most investors with long-term horizons can recover from a 20% dip, those same dips are devastating for investors like Aschenbrenner.
In the end, his $45 billion hedge fund liquidated almost overnight, catching the entire world by surprise and explaining why AI stocks had been slumping for weeks.
Even if you do not use leverage on AI stocks, you may still be affected by other people's leverage, since margin calls can force people to sell out of positions and turn small corrections into big ones.
Long-term investors shouldn't be worried
The AI boom is fueled by real demand, revenue, and profits. People are adopting AI models like ChatGPT and Gemini. Chatbots are becoming more common, and physical AI, such as humanoid robots and autonomous vehicles, is gaining traction.
It's not like the dot-com bubble, where companies had sketchy fundamentals and questionable long-term growth prospects. Furthermore, the margin unwind connected to Situational Awareness suggests there won't be a dramatic 1987-style event. There may be a good buying opportunity for patient investors.
Although Burry made a great call leading up to the recession that catapulted him to fame, he has repeatedly warned investors about stock market crashes that have never materialized.
Burry may have profited in the short run with some of his positions since he often uses puts. However, staying out of the market and avoiding growth stocks has hurt people in the long run.
Burry isn't right all the time, and when he makes bold bets, he's often thinking in months rather than years, since put options have expiration dates. It may also be the case that a broken clock is right twice a day. Burry disclosed a short position in Nebius Group (NASDAQ: NBIS) on Aug. 6. The neocloud then delivered superb earnings and is up roughly 20% since that disclosure.
The market's love of leverage is a risk that can affect the entire market, with an outsized impact on growth stocks. However, the fundamental story for AI is solid and strengthening.
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Michael Burry Is Staying Short Nvidia, Palantir, and Tesla, Warning of a Possible "1987-Type Fall" for AI Stocks. Should Investors Take the Bet Seriously?

Key Points
Autonomous driving technology is advancing at a rapid pace.
There are two robotaxi stocks uniquely positioned to benefit.
The global robotaxi market could be huge. "We think $8 trillion to $10 trillion for the entire autonomous taxi opportunity throughout the world, from almost nothing," predicts Cathie Wood, the CEO of Ark Invest. "That's how quickly AI is going to cause these things to happen."
Before jumping in, however, investors should consider how long it might take to reach Wood's predicted market size. Autonomous vehicles have been promised for decades. Tesla (NASDAQ: TSLA) CEO Elon Musk has repeatedly told investors that full self-driving capabilities are just around the corner. His predictions have occasionally come true, but often years later than his guidance suggested.
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Last year, McKinsey & Co. pushed back its timeline for robotaxis due to slower-than-expected growth. "This year's survey indicates that adoption timelines for autonomous vehicles have slipped by one to two years on average, relative to the 2023 survey," the firm admitted. "Adoption timelines for autonomous vehicles continue to grow."
But here's the thing: According to a growing number of experts and industry insiders, autonomous vehicles really are just around the corner. "I think the technology problem is pretty much already solved," James Peng, the CEO of a large autonomous driving software business, said at Fortune magazine's Leaders Forum in Macao on Sept. 8. Peng believes robotaxis will reach widespread market penetration globally within five years, a view many other analysts agree with.
Investing in robotaxi stocks should only be done with a long-term view. If you're willing to keep a multi-year investment horizon, two robotaxi stocks stick out as promising options.
1. Tesla remains the market leader
Tesla has been preparing for the robotaxi takeover for years. Its actual robotaxi service launched last summer. Earlier this month, the company officially added Cybercabs to its robotaxi fleet -- vehicles designed specifically as a self-driving taxi, with no steering wheel or pedals. Its robotaxi vehicles, of course, rely on Tesla's self-driving software, which has seen more than $10 billion in investment in recent years.
Tesla's strongest competitive advantage is its vertical integration. The company has a large existing manufacturing base, with full autonomy on when it builds its vehicles, where it builds them, and how they're designed. Competing services such as Uber Technologies (NYSE: UBER), for comparison, have to buy their vehicles from third-party suppliers, adding cost and complexity.
Many analysts project that this vertical integration will grant Tesla a structural cost advantage, allowing it to launch more vehicles at a faster pace than the competition with the same capital outlay.
2. Rivian is a high-upside stock despite added risk
Rivian Automotive (NASDAQ: RIVN) is taking a very different approach. Instead of operating its own robotaxi fleet, Rivian has positioned itself as an industry supplier. In March, for example, Rivian agreed to supply Uber with up to 50,000 vehicles in a $1.25 billion deal. As mentioned, many of Tesla's robotaxi competitors lack their own manufacturing capacities. Rivian is looking to fill that gap.
Rivian has some serious disadvantages versus a larger robotaxi peer like Tesla. The economics of vehicle manufacturing likely won't prove as attractive as operating an asset-light robotaxi service. (Tesla plans to have third parties purchase and manage fleets of robotaxis, with Tesla taking a cut of every ride.) Rivian also lacks Tesla's name brand recognition and profitability.
In short, Rivian has higher execution risk when it comes to targeting the nascent robotaxi market. But with a valuation of just $23 billion -- 98% smaller than Tesla's current valuation -- these risks may already be reflected in the company's stock price.
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2 Robotaxi Stocks to Buy in September for the Next Decade of Growth

For Immediate Release
Chicago, IL – September 11, 2026 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Tesla TSLA, BYD Co Ltd BYDDY and NIO Inc. NIO.
Here are highlights from Thursday’s Analyst Blog:
Will Tesla's China Discounts Lift Q3 Sales or Hurt Margins Further?
For the first time in nearly two years, Tesla is cutting prices in China, per South China Morning Post. The move targets the inventory of its Shanghai-built Model 3 and Model Y— cars discounted by 5,000 yuan and 10,000 yuan respectively. The company is also sweetening the deal with an 8,000-yuan insurance subsidy per buyer. The offer expires right at the end of this month and looks like an attempt to lift third-quarter delivery figures before the books close.
While Tesla is relying on discounts to defend volume, Chinese EV companies like BYD Co Ltd and NIO Inc. are witnessing increases in their deliveries.
Tesla’s move comes against a backdrop of steadily weakening sales. Through the first seven months of 2026, Tesla's Shanghai Gigafactory delivered just over 266,000 vehicles domestically, down 12.4% year on year, per CPCA, as cited in South China Morning Post. July was especially weak, with deliveries falling nearly 33% year over year, even as the plant shipped a record number of vehicles abroad. August brought a further 7.9% month-on-month decline. In short, exports have been doing the heavy lifting for the factory's overall output, masking just how soft home-market demand has become.
The contrast with domestic competitors is telling. BYD's August sales rose 17.8% year over year to 440,293 vehicles, its best month in nine months. NIO delivered 35,836 units, up 14.5% year on year.
Tesla’s discounts may boost the September-quarter deliveries, but they come at a cost. China's EV market is already fiercely competitive, and price cuts by Tesla could reignite a broader price war just as demand is softening—forcing rivals to respond and compressing margins industry-wide.
For Tesla, that margin risk is already visible. Even though total automotive revenues grew 23% year on year in the last reported quarter, operating income dropped 57%, and operating margin slipped to just 1.4%. Automotive gross margin, excluding regulatory credits, also declined sequentially to 16.3%. This mismatch implies that profits are not keeping pace with revenue growth and the gap may widen further.
So, while the September discounts could provide a modest boost to deliveries in China, the price cuts would put additional pressure on Tesla’s profitability.
The Zacks Rundown on TSLA Stock
Shares of Tesla have fallen 18% year to date, a smaller drop than NIO's 27.5% decline but a steeper one than BYD's 15%.
YTD Price Performance Comparison
From a valuation standpoint, TSLA trades at a forward price-to-sales ratio of 12.71, above the industry and its own five-year average. It carries a Value Score of D.
The Zacks Consensus Estimate for Tesla’s EPS has been revised downward over the past 60 days.
TSLA stock currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights Tesla, BYD and NIO

Key Points
Wall Street analysts expect BYD to maintain its lead over Tesla in global EV sales.
The two companies have significantly different business models and long-term aims.
China's BYD delivered 557,090 battery electric vehicles (EVs) in the second quarter compared to Tesla's (NASDAQ: TSLA) 480,126 EV deliveries, placing the former ahead by almost 77,000. There are a host of reasons to believe that BYD will continue to outpace Tesla in terms of deliveries in the coming years, but one big reason to believe that Tesla might just outpace BYD in the medium term. The really interesting part is how relevant that could be to Tesla's investment case.
Wall Street sees BYD winning the global electric vehicle sales war
Tesla's big rival is set to pull further ahead this year, according to Wall Street estimates. According to Visible Alpha, Wall Street analysts expect BYD's EV sales volume to reach 2.4 million for the full year, compared with the delivery consensus of 1.65 million published on Tesla's website. That lead will extend in the future, with the same sources calling for BYD EV sales volume of 4 million in 2030 compared to Tesla's 2.65 million.
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Moreover, several structural factors suggest BYD will stay ahead.
Why BYD's lead could prove insurmountable
The biggest reason BYD will win lies in a fundamental difference in its business model. BYD scales by offering a wide range of vehicles across different price points. This includes not just EVs but also plug-in hybrid electric vehicles (PHEVs). This strategy is aided by higher EV adoption in China and a complementary vertical supply chain, including batteries, motors, and electronics.
According to the International Energy Agency (IEA), EVs accounted for 55% of car sales in China in 2025, compared to 28% in Europe and less than 10% in the U.S. With this kind of end demand in place in its home market, BYD can invest in creating new and varied models within a relatively short development time while being backed by a comprehensive supply chain.
In fact, the only thing clearly differentiating BYD from a traditional automaker building scale through an extended line-up of vehicles is its much higher vertical integration, meaning it makes a high percentage of its own components.
In contrast, based on its most recent delivery report, Tesla generates more than 97% of its sales from just two models: the Model Y and the Model 3. Cybertruck hasn't generated the sales CEO Elon Musk expected, and Tesla has ceased production of the Model S and Model X, while a brand-new, lower-cost model looks unlikely anytime soon. Simply put, it's a major stretch to expect Model Y/3 sales to expand enough for Tesla to catch up with BYD's delivery volumes.
Enter the Cybercab
That said, Tesla does have an EV that could dramatically grow sales: the Cybercab. On anearnings callin January, Musk outlined that "we would expect over time to make far more Cybercabs than all of our other vehicles combined." Back in October 2024, Musk said Tesla was aiming to produce 2 million Cybercabs a year, "maybe 4 million ultimately."
Clearly, these numbers depend on the success of the robotaxi rollout, including the regulatory landscape. That's far from a foregone conclusion, even as Tesla continues to make solid progress on its rollout.
If Musk achieves his ambition of producing 2 million to 4 million Cybercabs a year, Tesla would indeed challenge BYD in deliveries, including those to third parties and Cybercabs in its own operational fleet.
Where next for Tesla?
All told, the battle of deliveries is not really Tesla's focus. Musk is aiming to turn Tesla's automotive operations into a vertically integrated transportation-as-a-service model, maximizing the cost-per-mile advantage of EVs by running them continuously in a Cybercab fleet. If he achieves his aim and kick-starts a long-term stream of highly lucrative, recurring, rapidly growing robotaxi revenue, then no shareholder will worry if BYD delivers more vehicles than Tesla.
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BYD Outsold Tesla by Roughly 77,000 EVs Again in Q2. Can Tesla Close the Gap?

Tesla (TSLA) closed the most recent trading day at $363.56, moving -1.16% from the previous trading session. This change lagged the S&P 500's daily loss of 0.59%. Meanwhile, the Dow lost 0.6%, and the Nasdaq, a tech-heavy index, lost 0.65%.
The stock of electric car maker has risen by 12.31% in the past month, leading the Auto-Tires-Trucks sector's gain of 4.88% and the S&P 500's loss of 1.37%.
The investment community will be closely monitoring the performance of Tesla in its forthcoming earnings report. In that report, analysts expect Tesla to post earnings of $0.47 per share. This would mark a year-over-year decline of 6%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $27.96 billion, down 0.5% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.79 per share and revenue of $105.94 billion. These totals would mark changes of +7.83% and +11.71%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Tesla. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Tesla is holding a Zacks Rank of #4 (Sell) right now.
Looking at its valuation, Tesla is holding a Forward P/E ratio of 205.26. This valuation marks a premium compared to its industry average Forward P/E of 18.
Also, we should mention that TSLA has a PEG ratio of 9.09. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. TSLA's industry had an average PEG ratio of 1.11 as of yesterday's close.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This industry, currently bearing a Zacks Industry Rank of 44, finds itself in the top 18% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Indicator	TTM Median
P/E	285.51 18.27
Price/Sales	12.14 0.68
P/B	16.08 1.73
P/FCF	218.17 13.56

Indicator	TTM Median
ROE	4.53 14.93
ROA	2.70 5.11
ROI	4.39 8.85
Net Worth	1.26K 0.84
Quick Ratio	1.62 0.86
Current Ratio	1.94 1.39

Indicator	TTM Median
Net Profit Margin	3.67 5.79
Operating Margin	4.22 8.49
Gross Margin	19.07 39.55
Return on tangible equity	4.54 21.78

Indicator	TTM Median
EPS	0.04 0.55
EPS Forecast	0.32 0.50
Revenue	22.39B 193.00M
Gross Profit	4.72B —
EBITDA	2.02B —

Tesla, Inc.

Recent quarterly and TTM performance

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