Tesla Stock Continues to Climb. This 1 Catalyst Makes Its Growth Path Sustainable

Despite a difficult start to the year, Tesla (NASDAQ: TSLA) stock is now up by double digits in 2025. With a market cap of $1.3 trillion, however, many investors are wondering how much additional growth potential shares offer. Some analysts think that Tesla can become a $2 trillion business by the end of 2026. But there are some key risks to be aware of before loading up on Tesla stock.Image source: Getty Images.The biggest risk facing Tesla right now is the stock's premium valuation. Shares trade at a price-to-sales ratio of around 16. Other electric car stocks like Lucid Group and Rivian have stocks that trade between 3 and 7 times sales. According to this metric, Tesla trades at a 100% to 400% premium over the competition. That's the case even though competitors like Rivian and Lucid have market caps under $20 billion, theoretically providing much longer growth runways versus Tesla's $1.3 trillion valuation.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool