Tesla, Inc. (TSLA.US) stock price fell to a three-month low as Wall Street refuses to foot the bill for Musk's "pie in the sky" promises.

Tesla, Inc. (TSLA.US) stock price has dropped to a three-month low, falling over 30% from its historical high. Wall Street's confidence in Tesla, Inc.'s artificial intelligence (AI) narrative and prospects for autonomous driving is gradually diminishing. Investors' focus has shifted towards Tesla, Inc.'s investment value as a tangible AI company, but Oppenheimer has issued a warning regarding Tesla, Inc.'s valuation. Oppenheimer maintains a "market perform" rating on Tesla, Inc. Analyst Colin Rusch and his team at Oppenheimer believe that Elon Musk's acquisition of the AI company OpenAI is only temporarily diverting attention from other challenges. Rusch points out that Musk's bid for OpenAI is 38% lower than the company's funding level in October of last year. The analysts state, "We do not expect any meaningful discussion. However, as competition intensifies in electric and autonomous vehicles, we believe that Wall Street's valuation of Tesla is facing increasing risks. We also believe that CEO Musk's political activities, which are popular in certain circles, may alienate consumers and employees as the Trump administration tests the limits of its power." Demand for Tesla, Inc.'s electric vehicles in California and Europe has recently shown a negative growth trend. Rusch also states that evidence this week further indicates the increasing maturity of autonomous driving technology across the industry. Tesla, Inc.'s stock price fell 6.34% on Tuesday, closing at $328.5, marking a new closing low since November 2024 and the largest daily drop since December 18, 2024. Since hitting a historical high in mid-December 2024, Tesla, Inc.'s stock price has fallen over 30%. Earlier this week, BYD Company Limited announced that most of its models will come equipped with advanced driving assistance features at no extra cost, shaking up the electric vehicle industry. Last month, Wall Street analysts had already warned about Tesla, Inc.'s stock price. Tesla, Inc.'s performance in the fourth quarter of last year was almost entirely below analysts' expectations, even leading to a downgrade in sales growth prospects for 2025. However, Tesla, Inc.'s stock price surged after earnings, as investors remained optimistic about Siasun Robot & Automation's taxi business, humanoid Siasun Robot & Automation, and artificial intelligence. Morgan Stanley's Ryan Brinkman had warned at the time that Tesla, Inc.'s stock price "had completely disconnected from fundamentals."