Oklo stock tumbles as Financial Times scrutinizes valuation
Investing.com -- Tesla shares have surged 32% since the end of August, far outpacing the S&P 500’s 3% gain.
Barclays analysts said in a note Monday that the rally reflects “favorable near-term fundamental datapoints around deliveries / 3Q EPS, and perhaps more importantly around excitement into the Nov 6 AGM plus an increasingly engaged Elon.’”
Barclays argued that the stock’s outperformance is not just about fundamentals.
“We believe the rally can also be put in context of Tesla as the ‘OG meme stonk,’ with performance also reflecting a combination of technical factors (i.e. option activity / call purchasing), retail excitement, and Mag7 catch-up,” the analysts wrote.
The mix of excitement and positioning has pushed Tesla’s valuation higher. The analysts noted that “these trends have magnified the ongoing disconnect between the stock and near-term earnings power, with the stock trading at a frothy 180x ’26 PE multiple.”
Looking ahead, Barclays expects Tesla to deliver strong third-quarter numbers. “We reiterate our expectation for Tesla to beat on 3Q deliveries,” the note said.
However, the firm suggested the market may already be pricing in that outcome and warned that “we wouldn’t be surprised if there is a near-term breather.”
Still, Barclays highlighted that the upcoming shareholder meeting could provide another catalyst.
“Beyond the deliveries print, we think excitement could continue to build into the Nov 6 AGM, which we expect will highlight Elon Musk’s increased engagement with Tesla and excitement on a supercharged growth narrative ahead,” the analysts said.
Barclays concluded that Tesla’s September rally can be explained by “re-engaged Elon, favorable datapoints, and the return of the ‘OG meme stonk.’”