Key Takeaways Tesla shares gained ground in extended trading on Wednesday as optimism over the automaker's self-driving outlook trumped fourth-quarter results that came in below Wall Street’s expectations.

That said, Tesla remains one of the most expensive stocks in the market right now. There are very few examples where paying 122 times forward earnings turned out to be a good investment. If Tesla’s automation promises end up taking years and years like FSD, there is going to be a lot of downside risk. It might be time to start taking some profit.

On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

Tesla is set to report fourth-quarter earnings after the bell Wednesday, with analysts mostly optimistic the electric vehicle maker could benefit from CEO Elon Musk's ties to President Donald Trump.

I t feels like the investing world took the spotlight off of Tesla (NASDAQ: TSLA) in 2024. Investors were enamored with artificial intelligence (AI) stocks such as Nvidia and Pala

Tesla shares opened up 3.6% in Frankfurt trading on Thursday, even as quarterly results at the U.S. electric vehicle maker fell short of Wall Street expectations.

After an initial drop, Tesla stock has turned higher, up almost 4% in after-hours trading at $403 a share. Any disappointment with fourth-quarter margins has faded probably because of the outlook for 2025.

In an earnings call last January, Musk characterized the shrinking bottom line as Tesla moving “between two major growth waves,” an assertion agreed upon by Wa