Tesla, Inc. (NASDAQ: TSLA) starts Monday, November 24, 2025 with investors focused on two very different storylines: Elon Musk’s reveal of Tesla’s in‑house AI chip ambitions, and fresh legal headlines from the U.S. and India. Pre‑market trading shows Tesla shares in the high $390s, roughly 1.5% above Friday’s close around $391, as the market weighs long‑term AI upside against near‑term risk. [1]
Tesla stock price and valuation snapshot
Price action
- Last official close (Friday, Nov. 21, 2025): about $391.09 per share. [2]
- Pre‑market today (Nov. 24): CoinCentral reports TSLA up roughly 1.5% to around $397 after Musk’s latest AI comments. [3]
- Barron’s and other outlets note that coming into today, Tesla is down about 3% year‑to‑date but up roughly 11% over the past 12 months, underlining how volatile 2025 has been for the stock. [4]
Size and valuation
- Market cap: roughly $1.30 trillion, putting Tesla firmly in mega‑cap territory alongside the largest global tech names. [5]
- Trailing P/E: around 260–270 times earnings, based on a share price near $391 and trailing EPS of about $1.50. [6]
- Forward P/E: around 170 times expected profits, according to multiple valuation trackers and analyst commentary. [7]
- 12‑month range: MarketBeat data shows TSLA trading roughly between $214 and $489 over the past year, highlighting how quickly sentiment can swing. [8]
For context, Tesla’s earnings multiple is several times higher than many established automakers and even above a number of large software and semiconductor peers, underscoring how much future growth the market is already pricing in. [9]
Musk spotlights Tesla’s “secret weapon”: in‑house AI chips
The main bullish catalyst for Tesla stock today is Elon Musk’s decision to publicly highlight Tesla’s internal AI chip efforts over the weekend and into Monday morning.
What Musk is saying
- In new comments shared on X, Musk said Tesla has quietly run an advanced AI chip and board design team for years, deploying millions of custom AI chips across its vehicles and data centers to power its real‑world AI stack. [10]
- Crypto and tech outlets report that this reminder of Tesla’s AI capabilities helped send the shares up roughly 1.5–2.2% in pre‑market trading as investors reassess Tesla not just as an EV maker, but as an AI hardware and software platform. [11]
Musk has also framed this AI chip push as strategically aggressive, signaling that Tesla aims to eventually manufacture more AI chips than all other chipmakers combined over time – an ambition investors are treating as aspirational but directionally important. [12]
AI5 and AI6: Tesla’s next‑generation chip roadmap
A separate report from TechResearchOnline fleshes out what Tesla’s AI chip future could look like: [13]
- Tesla is advancing its AI5 chip to “tape‑out”, meaning the design is ready for fabrication.
- The company has signed a multi‑year, ~$16.5 billion contract with Samsung to manufacture the AI6 chip at Samsung’s Texas foundry, while also engaging TSMC facilities in Taiwan and Arizona for AI5 production.
- AI5 timeline: sample units targeted in 2026, with full‑scale production in 2027.
- AI6 timeline:mass production around 2028, with performance roughly double AI5.
Crucially, Tesla is embracing a dual‑foundry strategy (Samsung + TSMC), which can reduce supply‑chain risk and support very high volumes if its robotaxi and robotics plans scale as envisioned. [14]
This hardware roadmap feeds directly into:
- Full Self‑Driving (FSD) and robotaxis – more on‑board compute and data‑center capacity for training.
- Optimus humanoid robots, which rely on similar AI processing pipelines.
- Tesla’s pitch that it is not simply an auto manufacturer, but a real‑world AI platform. [15]
Piper Sandler reiterated an Overweight rating with a $500 price target, citing on‑site observations of Tesla’s AI, FSD and robotics programs as reasons to stay bullish despite volatility. [16]
New Washington state lawsuit underscores safety scrutiny
Counterbalancing the AI optimism is a serious new legal headline.
According to Insurance Journal, Tesla has been sued over a fatal crash in Washington state involving a Model 3, in which one person died and another was seriously injured after rescuers allegedly struggled to open the vehicle’s doors. [17]
Key details from the filing:
- The crash occurred in January 2023, when the vehicle allegedly “suddenly and rapidly accelerated out of control,” struck a utility pole and caught fire. [18]
- The suit argues that Tesla’s electrically powered door handles and door mechanisms made it harder for first responders to access the occupants, contributing to the severity of the outcome.
- The case adds to a growing body of litigation around Tesla’s door design and, more broadly, around the safety of its vehicles and driver‑assistance systems. [19]
At the time of writing, Tesla has not issued a detailed public response on this specific complaint, and no court findings have been made. For investors, the case is another reminder that product liability and regulatory risk remain a persistent overhang for the stock, especially as Tesla pushes deeper into autonomy where scrutiny is even higher.
Delhi High Court backs Tesla in India trademark fight
On the international front, Tesla scored a legal and branding win in India today.
The Delhi High Court has granted interim relief to Tesla Inc. in its trademark infringement suit against Tesla Power India, an Indian company that had been using the “TESLA” mark and signaling ambitions in the EV space. [20]
According to Business Standard’s summary of the order: [21]
- The court restricted Tesla Power India from using the “Tesla” mark or promoting electric vehicles under that brand while the suit is pending.
- Tesla had earlier alleged the Indian firm used the TESLA name in ads and had begun manufacturing e‑scooters carrying the Tesla branding, despite prior undertakings not to enter EVs under that name.
- The dispute dates back to at least 2022, when Tesla issued cease‑and‑desist notices to Tesla Power India and an associated entity.
Why this matters for investors:
- Protecting the Tesla brand in India is strategically important as the company explores local manufacturing and broader EV expansion in one of the world’s fastest‑growing auto markets.
- The interim order reduces immediate brand confusion risk, which can be significant when a premium global brand starts selling into a new geography.
While the ruling is not a final judgment, it tilts the near‑term legal landscape in Tesla’s favor as it plans its India strategy.
Analysts are sharply divided on Tesla’s valuation
Today’s Tesla coverage also highlights just how polarizing TSLA remains on Wall Street and among independent analysts.
Bullish arguments: AI, robots and recovering growth
The Nasdaq/Motley Fool analysis published this morning notes that Tesla’s core business returned to double‑digit revenue growth in Q3 2025 after a softer first half: [22]
- Q3 revenue: about $28.1 billion, up 12% year over year.
- Automotive revenue: roughly $21.2 billion, up 6%.
- Energy generation and storage: around $3.4 billion, up 44%, with deployments of 12.5 GWh, highlighting strong momentum in Tesla’s energy storage segment.
- Vehicle deliveries in the quarter: more than 497,000 units.
However, the same piece stresses that profitability is under pressure:
- Operating income fell roughly 40% year over year to $1.6 billion.
- Operating margin compressed to 5.8% from 10.8% a year earlier.
- Operating expenses jumped around 50% to $3.4 billion, driven by heavy investment in AI infrastructure, FSD development and new products such as Optimus. [23]
Even the bullish analysts acknowledge that Tesla’s P/E near the mid‑260s and price‑to‑sales around the mid‑teens are demanding, but they argue these multiples could be justified if Tesla evolves into a higher‑margin software and services platform built on real‑world AI and robotaxis. [24]
Piper Sandler’s $500 target, mentioned earlier, encapsulates this view: pay up today because Tesla’s AI chips, FSD software and robotics could eventually transform its earnings profile. [25]
Cautious and bearish views: priced for perfection
Other commentators are far more skeptical:
- The Nasdaq/Motley Fool author explicitly concludes that at today’s valuation, they would wait for a much lower entry point – around $220 per share – before buying, citing the combination of high capital intensity, timeline risk for autonomy and robots, and very rich multiples. [26]
- A Forbes piece titled “Tesla Stock To $274?” argues via a multifactor model that now could be a good time to start trimming TSLA exposure, implying fair value substantially below the current price. [27]
- Quantitative valuation site ValueInvesting.io goes even further, estimating a “fair value” near $39.61 per share based on a Peter Lynch–style model – an extreme case that would imply almost 90% downside from around $391. [28]
The takeaway: consensus on Tesla’s valuation simply doesn’t exist. Depending on the model and assumptions, you can justify almost anything from substantial upside to dramatic downside.
Institutional flows: steady but not decisive
MarketBeat’s latest note highlights incremental buying by a cluster of smaller institutional investors and wealth managers, including firms such as LGT Financial Advisors, Chelsea Counsel, Evergreen Private Wealth and others, which have either initiated or increased TSLA positions in recent months. [29]
While these are not blockbuster moves on their own, they show continued institutional participation even at today’s lofty valuation, and they reinforce the fact that a significant portion of Tesla’s float is in professional hands.
Macro backdrop: Fed optimism helps growth stocks
Beyond company‑specific headlines, today’s broader market tone is cautiously positive for high‑beta names like Tesla:
- S&P 500 and Nasdaq futures are higher this morning as traders look for a rebound from November’s losses.
- Optimism has been supported by a Federal Reserve official signaling openness to a December rate cut, easing pressure on long‑duration growth stocks. [30]
Growth‑heavy indices tend to respond strongly to changes in interest‑rate expectations, so any further hints of Fed dovishness could continue to support TSLA in the short term.
What TSLA traders and investors are watching today
As November 24’s session unfolds, here are the main Tesla‑specific factors likely to be on traders’ dashboards:
- Follow‑through on the AI chip rally
- Does pre‑market strength driven by Musk’s AI chip comments translate into sustained gains during regular trading hours?
- Watch for any additional details from Tesla on AI5/AI6 timelines, foundry partnerships or capacity. [31]
- Legal headlines and potential regulatory reactions
- Any response from Tesla, regulators or safety agencies regarding the Washington state crash lawsuit could move sentiment, especially if it touches on Autopilot or vehicle design. [32]
- India expansion narrative
- Investors may look for commentary linking the Delhi High Court’s interim ruling to Tesla’s broader India strategy – for example, future gigafactory plans or import‑duty negotiations. [33]
- Positioning vs. valuation
- With TSLA trading at hundreds of times trailing earnings, any sign of slowing growth or rising costs can trigger sharp moves. Conversely, stronger evidence that AI chips, FSD and robots are translating into durable revenue streams could keep the multiple elevated. [34]
- Technical and sentiment dynamics
- Recent commentary notes that Tesla’s share price has been consolidating between roughly the upper $300s and low $400s after a more than 14% slide this month. Traders will be watching whether today’s AI‑driven bounce can sustainably shift the stock out of that range. [35]
Bottom line: Tesla stock today is a tug‑of‑war between AI promise and real‑world risk
For November 24, 2025, Tesla’s story is neatly split in two:
- On the upside, Musk is reminding markets that Tesla is far more than just an EV company. An in‑house AI chip roadmap, deep FSD ambitions and humanoid robots give bulls plenty to work with – and help justify, in their view, a trillion‑dollar market cap and a triple‑digit earnings multiple. [36]
- On the downside, a new fatal‑crash lawsuit, ongoing safety and regulatory scrutiny, and the sheer height of today’s valuation mean the stock is still priced for near‑perfection. Legal setbacks, slower‑than‑hoped autonomy timelines or macro shocks could all provoke sharp pullbacks. [37]
For readers following Tesla stock on Google News or Discover, the key takeaway is simple: TSLA remains one of the market’s purest high‑risk, high‑reward stories. The AI chip narrative is gaining momentum, but it is arriving alongside fresh evidence that Tesla still operates under an intense legal and regulatory microscope.
As always, this article is for informational purposes only and does not constitute financial or investment advice. Anyone considering trading or investing in Tesla should carefully review the company’s filings, earnings reports and risk factors, and consider speaking with a qualified financial professional before making decisions.
References
1. coincentral.com, 2. www.nasdaq.com, 3. coincentral.com, 4. www.barrons.com, 5. stockanalysis.com, 6. www.financecharts.com, 7. www.financecharts.com, 8. www.marketbeat.com, 9. companiesmarketcap.com, 10. cryptobriefing.com, 11. cryptobriefing.com, 12. coincentral.com, 13. techresearchonline.com, 14. techresearchonline.com, 15. coincentral.com, 16. coincentral.com, 17. www.insurancejournal.com, 18. www.insurancejournal.com, 19. www.insurancejournal.com, 20. www.business-standard.com, 21. www.business-standard.com, 22. www.nasdaq.com, 23. www.nasdaq.com, 24. coincentral.com, 25. coincentral.com, 26. www.nasdaq.com, 27. www.forbes.com, 28. valueinvesting.io, 29. www.marketbeat.com, 30. finance.yahoo.com, 31. techresearchonline.com, 32. www.insurancejournal.com, 33. www.business-standard.com, 34. www.nasdaq.com, 35. coincentral.com, 36. techresearchonline.com, 37. www.insurancejournal.com
