Tesla Stock in 2027: Why I Think TSLA Still Has Room to Run
Tesla looks wildly expensive today, but if FSD, robotaxis, and Optimus deliver, today's valuation could look very different by 2027.
Overview
On paper, Tesla (NASDAQ: TSLA) looks extremely expensive right now. The stock trades at roughly 330 times trailing earnings and around 180 times forward earnings, with a PEG ratio of close to 6.9, one of the highest multiples among large caps. That is not cheap by any normal metric, and it explains why people keep asking whether it is time to sell.
Underneath that valuation, Tesla is still a real operating company with tens of billions in revenue each quarter. In the second quarter of 2026, Tesla generated about $28.24 billion in total revenue and $398 million of operating income, although the operating margin dropped to 1.4% as the company pushed hard on new projects and absorbed higher costs. Automotive revenue was about $20.52 billion, up roughly 23% year over year, and the energy business added more than $3.14 billion, growing double digits even as margins in that segment reset lower.
Details
What should keep you from selling is what Tesla is doing in 2026. Management is rolling out the most concrete roadmap yet for Full Self-Driving (FSD) and robotaxis, targeting unsupervised FSD on customer vehicles by Q4 2026 and robotaxi operations across roughly a dozen U.S. states by the end of the year. At the same time, Tesla has begun installing first-generation Optimus humanoid robot lines in Fremont, converting the old Model S and Model X line, with a target run rate capacity of up to 1 million robots per year by late 2026 and an eventual 10 million per year in Texas.
Source
Originally published at www.fool.com.