<div id="readability-page-1"><img width="1152" height="720" src="https://imageproxy.pbkrs.com/https://invezz.com/wp-content/uploads/2025/06/image122.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" original-src="https://imageproxy.pbkrs.com/https://invezz.com/wp-content/uploads/2025/06/image122.png"/>Tesla shares’ more than 100% rally since early March has pushed the company’s market cap up to a staggering $1.5 trillion – more than the valuation of every other American car company combinedBut a former board member – Steve Westley – believes TSLA will be hard-pressed to replicate this outperformance, or will at least have to “bend over backwards” to deliver similar returns in 2026.While investors are betting on breakthroughs in autonomous driving, Westley said even that could fail to sustain the upward momentum in Tesla stock next year.<h2>Why it may be difficult for Tesla stock to push higher in 2026</h2>Speaking with CNBC, Westley agreed that it’s hard to justify TSLA’s current valuation given 2026 could be its “second year of declining sales and shrinking profits.”According to him, the multinational must move with urgency in securing regulatory approval for its robotaxis in cities beyond the two it currently operates in.Without broader adoption, Tesla’s sales may stall even faster, making it difficult for investors to stick with it.TSLA shares are currently going for a forward price-to-earnings (P/E) ratio of nearly 430, which makes it even more expensive than the likes of Palantir Technologies.And it’s not like the EV company pays a dividend currently to incentivise ownership despite being egregiously overvalued.<h2>Tesla is significantly behind Waymo in robotaxis</h2>Billionaire Elon Musk has repeatedly touted Tesla’s autonomous technology as “superior” to its staunch rival, Waymo.In a recent CNBC interview, however, Steve Westley suggested Waymo is far ahead of it in reality, given it “goes about 17,000 miles between critical interventions versus about 1,500 only for Tesla.”This highlights the challenge TSLA faces in proving its selfless-driving tech is safe and reliable.Moreover, Waymo has already penetrated some 20 markets and expects to deliver tens of millions of rides annually, while Tesla remains within the bounds of two cities only and still requires safety drivers.The disparity underscores that Tesla shares have significant ground to make up before they can compete meaningfully in autonomous ride-hailing.<h2>Robotaxi plans may not be enough for TSLA shares</h2>Westley agreed that delivering full self-driving would be a “big step forward” for Tesla next year, but said the stock still “needs more”.In his view, the company’s energy division could be “the real spark” investors are looking for. That business grew from $10 billion last year to $14 billion in 2025 – “that’s 40% and they can keep up that growth.”TSLA is becoming a major supplier of powerwalls, megapacks, and energy blocks for utilities – at a time when artificial intelligence (AI) and data centres are driving strong electricity demand.This diversification positions Tesla not just as a carmaker but as a technology and energy company.According to Westley, proving the scale of these offerings could be critical. While robotaxis may grab headlines, energy growth could provide the sustainable boost TSLA stock needs.The post Tesla stock will have to 'bend over backwards' to sustain momentum in 2026: here's why appeared first on Invezz</div>

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Tesla's stock has surged over 100% since March, pushing its market cap to $1.5 trillion. However, former board member Steve Westley believes maintaining this momentum in 2026 will be challenging. He cites potential declining sales, shrinking profits, and the need for regulatory approval for robotaxis. Tesla's autonomous technology lags behind Waymo, and its high P/E ratio makes it expensive. Westley suggests Tesla's energy division could be the key to sustaining growth, despite the focus on autonomous driving.

- Tesla shares have surged over 100% since March, raising its market cap to $1.5 trillion, but former board member Steve Westley suggests this performance may be unsustainable in 2026 due to potential declining sales and profits.  
- Westley emphasizes that Tesla needs regulatory approvals for robotaxis and must compete with rivals like Waymo, which are currently outperforming it in autonomous driving technologies.  
- He believes Tesla's energy division could provide necessary growth, as it has expanded significantly, positioning the company not just as a carmaker but as a technology and energy provider.

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Tesla stock will have to ‘bend over backwards’ to sustain momentum in 2026: here’s why