---
type: "Topics"
locale: "en"
url: "https://longbridge.com/en/topics/100000000948866.md"
description: "I expect Tesla's stock price to face downside pressure of over 7.5%, driven by the following core financial risks:• Core profitability under pressure: Automotive gross margin slipped from 19.2% in Q1 to 16.3% in Q2, with intensifying industry competition squeezing margins further.• High-margin regulatory items unsustainable: Sales of Regulatory Credits plummeted to $146 million in Q2; such high-profit revenue is unlikely to see a V-shaped rebound on the books in the short term.• Cash flow deteriorating: As operating profits thin, massive CapEx remains required for AI computing power, Robotaxi infrastructure, and new factory development. Free cash flow (FCF) will likely remain negative or worsen further.Conclusion: Unless Elon Musk can work another "miracle" in operations and earnings, the current valuation is hard to justify given near-term fundamentals."
datetime: "2026-10-21T16:22:38.000Z"
locales:
  - [en](https://longbridge.com/en/topics/100000000948866.md)
  - [zh-CN](https://longbridge.com/zh-CN/topics/100000000948866.md)
  - [zh-HK](https://longbridge.com/zh-HK/topics/100000000948866.md)
author: "[TWK-SH](https://longbridge.com/en/profiles/2064274464694620160.md)"
generator: "portal-rs"
---

# I expect Tesla's stock price to face downside pres…


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> **Disclaimer: This article is for reference only and does not constitute any investment advice.**