<div id="readability-page-1">Tesla (TSLA 2.27%) continues to take investors on a volatile journey. While shares have soared recently due to founder and CEO Elon Musk's $1 billion stock purchase, this remains a very polarizing business. There are valid arguments coming from both bulls and bears as to Tesla's merits as an investment. Is this top electric vehicle (EV) stock a buy, sell, or hold right now? <div><img src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84MzI1MTYvdGVzbGEtY2FyLWF0LXN1cGVyLWNoYXJnZXItc3RhdGlvbi5wbmcmdz03MDA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="700" height="420" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84MzI1MTYvdGVzbGEtY2FyLWF0LXN1cGVyLWNoYXJnZXItc3RhdGlvbi5wbmcmdz03MDA"/>Image source: Tesla. </div> <h2>Concerns around valuation</h2> In the past decade, Tesla shares have climbed 2,300% (as of Sept. 18). This phenomenal gain is a direct result of the company's success disrupting the global auto industry with its innovative and tech-forward EV fleet. Sales have trended higher over time, and the brand is now widely recognized. However, the stock has overreached. Investors who wish to buy the stock must pay a hefty price tag with shares boasting a price-to-earnings (P/E) ratio in nosebleed territory at 246. This valuation is a convincing enough reason alone for many Tesla shareholders to sell out of their position -- such a high valuation introduces a major headwind to achieving solid future returns. <h2>Tesla's (possible) future</h2> To make matters worse, Tesla's automotive revenue declined 16% year over year in the second quarter, and its operating income tanked 42%. A growing backlash against Musk's public profile and increased competition have led to struggles for the EV segment. That said, many investors believe that Tesla will look totally different five or 10 years down the road. They're betting that the company's newly launched Robotaxi business and other technologies like humanoid robots could eventually lead Tesla to higher sales and earnings. The success of those ventures is anything but certain, however, despite how much they may be propping up the current valuation. For much of Tesla's existence as a publicly-traded company, the stock has been highly speculative, and that remains the case now -- the risk-reward profile simply doesn't make sense at these levels. </div>

TSLA

TSDD

TSLL

TSLQ

09366

07766

07366

TSLR

Tesla's stock remains a contentious topic among investors, with recent volatility following Elon Musk's $1 billion purchase. Despite a 2,300% increase in shares over the past decade, concerns about its high P/E ratio of 246 and a 16% decline in automotive revenue raise questions about its valuation. While some investors are optimistic about future ventures like Robotaxi, the stock's speculative nature and current risks suggest a cautious approach. The debate continues: is Tesla a buy, sell, or hold?

- Tesla's stock has experienced significant volatility, recently boosted by Elon Musk's $1 billion purchase, yet remains polarizing among investors.  
- Despite a remarkable 2,300% increase in shares over the past decade, concerns about its high valuation, with a P/E ratio of 246, and a 16% decline in automotive revenue in the second quarter raise red flags.  
- While some investors are optimistic about future ventures like Robotaxi and humanoid robots, the speculative nature of Tesla's stock continues to present a challenging risk-reward scenario.  

Is Tesla Stock a Buy, Sell or Hold?