Jul. 20, 2025 5:35 AM ETTesla, Inc. (TSLA) Stock, TSLA:CA StockTSLA, TSLA:CARicardo Fernandez2.64K FollowersSummaryI rate Tesla a sell due to high expectations for robotaxi/self-driving and a sharp rebound in auto sales, while valuation is aggressive, leaving little room for disappointment.Tesla's valuation is stretched at 62x P/CE YE26 estimates, with much of the long-term growth dependent on unproven self-driving segment.Auto sales should remain the core driver, expected to grow 22% in 2026. Tesla has room to increase its market share, but margin expansion faces execution risk.Ride-hail stocks like Uber and Lyft offer better value with less execution risk, making them more attractive alternatives to Tesla at current prices.Victor Golmer/iStock Editorial via Getty ImagesIntroductionI recently covered Uber Technologies (UBER) and Lyft (LYFT) with a focus on the impact and opportunity that autonomous vehicles (AV) technology could present to the ride-hail companies, which IThis article was written byRicardo Fernandez2.64K FollowersExperience is difficult to learn. After 30 plus years of critically analyzing the nuts and bolts of businesses as diverse as airlines, oil, retail, mining to fintech and ecommerce plus the macro, monetary and political drivers. I continue to immensely enjoy learning and applying my experience to unravel, comprehend and benefit from new ideas, technology, innovation and business models. In addition, living through multiple crises, tequila, Asia, dotcom, 9/11, the great recession and the Covid19 pandemia, plus a stint at entrepreneurialism (Export, Factoring and Printing) provides for an extraordinary base of experience to be applied across multiple disciplines.Analyst’s Disclosure:I/we have a beneficial long position in the shares of UBER, LYFT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Comments