Tesla (NASDAQ:TSLA) inventory has gained in latest weeks after beating supply expectations within the second quarter. The Elon Musk-run firm has seen its shares rise 40.9% over the previous 30 days and now trades with some huge valuation multiples. I’m nonetheless impartial on Tesla, as I recognize that Robotaxi and robotics could possibly be game-changing for the enterprise, however the valuation is difficult to justify.A Resurgent TeslaIn Q2, Tesla’s deliveries had been down by 4.8% year-over-year (YoY), however this was higher than the market anticipated. Within the three months to June 30, Tesla delivered 443,956 automobiles, representing a 14.8% enhance versus the primary quarter. The inventory has surged since, with optimistic figures throughout the electrical automobile (EV) sector inferring resurgent demand.Tesla inventory had already began pushing upward in June after shareholders voted in favor of giving Musk his 2018 $56 billion pay bundle and reincorporating the corporate in Texas. The information led Tesla shares to leap greater than 10%, taking it above $200 a share.Is Tesla’s Surge Justified?As a producer of automobiles, Tesla is clearly overvalued. Even Elon Musk has requested traders to worth Tesla as a robotics or synthetic intelligence (AI) firm relatively than one which purely focuses on the manufacturing of street automobiles – even when they’re electrical. As such, some analysts could query why Tesla, which was already buying and selling on elevated multiples, has surged on the again of those improved EV deliveries. It’s an excellent level.The inventory is presently buying and selling at 96.4x non-GAAP ahead earnings, making it the costliest EV inventory by many multiples and probably the most costly expertise corporations. Furthermore, the anticipated earnings progress fee for the subsequent three to 5 years is simply 11.2%, inferring that analysts see little or no tangible influence from the Robotaxi enterprise over the medium time period.In flip, this results in a price-to-earnings-to-growth (PEG) ratio of 8.7x. That’s far past what is generally thought of engaging (1.0x or decrease).Different metrics compound this unattractive valuation. The inventory trades at 8.3x TTM gross sales and seven.9x ahead gross sales, representing an 830% and 813% premium to the sector, respectively. Tesla’s ahead price-to-cash-flow ratio of 63.9x additionally represents a 585% premium to the sector as a complete.Nonetheless, Musk has been touting two main developments, that are on account of happen over the subsequent 18 months. The primary is the long-awaited Robotaxi – set to be unveiled on August 8 – and the second is the sale of its Optimus robots, which can begin within the second half of 2025.Story continuesWhat May These Developments Imply for Tesla?Autonomous driving provides Tesla the chance to dominate in a brand new and thrilling section. Trying from the surface, Tesla seems to be forward of the sport in relation to automation. We’ll be taught extra on August 8. Even Nvidia (NASDAQ:NVDA) CEO Jensen Huang agrees, just lately noting that Tesla was “far forward” in self-driving tech.The Robotaxi will permit Tesla to open up new income streams. Unsurprisingly, one in all these could be ride-hailing. In 2023, 76% of Tesla’s revenues had been generated by automotive gross sales, with an additional 8% generated by servicing. Simply 5.8% or $6 billion was earned by its Power Era and Storage division. Journey-hailing additionally guarantees extensive margins.Regardless of the potential of the Robotaxi, I’ve seen only a few analysts’ forecasts that truly search to quantify this potential. Cathie Wooden’s ARK is one exception. Based on ARK Make investments, almost 90% of Tesla’s earnings will likely be attributed to the Robotaxi enterprise in 2029. In ARK’s bear-case state of affairs, the autonomous ride-hailing enterprise would ship $603 billion in 2029. In its bull case state of affairs, this determine rises to $951 billion. In flip, this led Wooden’s funding fund to recommend the inventory will likely be price $2,600 in 2029.It’s price recognizing that ARK Make investments’s forecasts have been dismissed by many as over-ambitious. For one, the worldwide ride-hailing market is anticipated to be price $215.7 billion by 2028 (in keeping with Statista). That’s lower than half what ARK believes Tesla would generate from ride-hailing in its bear case for 2029. I can solely assume that Wooden’s fund is inferring that self-driving automobiles will engender an enormous shift away from automotive possession in direction of ride-hailing.There are additionally query marks as to how Tesla might mass-produce a fleet of Robotaxis giant sufficient to generate the figures projected by ARK. Assuming a manufacturing value between $150,000 and $200,000 (per ARK Make investments), constructing a worldwide fleet of Robotaxis would doubtless value trillions. Tesla doesn’t have the required money stream to construct a worldwide fleet.Because the Q1 outcomes, Musk has additionally been touting Tesla’s potential in robotics, with “restricted manufacturing” of its Optimus robotic in 2025. Based on Musk, robots might flip Tesla right into a $25 trillion firm. Nonetheless, investing in Tesla for its robotics capabilities could possibly be very speculative, contemplating how little we all know.Is Tesla Inventory a Purchase, Based on Analysts?On TipRanks, TSLA is available in as a Maintain primarily based on 12 Buys, 14 Holds, and eight Promote scores assigned by analysts up to now three months. The typical Tesla inventory worth goal is $180.92, implying 26.57% draw back potential.The Backside Line on Tesla StockDespite Tesla being in a pole place to dominate within the autonomous period, I stay cautious of Musk’s overpromising. This makes it very arduous to get behind a inventory that’s presently buying and selling at 96.4x non-GAAP ahead earnings. It could possibly be priced for perfection, and if Musk underdelivers on August 8, the share worth could pull again considerably. That’s why I’m remaining impartial.Disclosure