Creatix / July 19, 2025
Weak fundamentals, sky-high stock—Elon Musk’s vision still drives Tesla’s ascent
If you follow us, you know we love to buy and sell Tesla stock (TSLA) for profit. We typically go long at $300 and short at $330 and above. We have lost money in the past when Tesla has defied all logical valuations and broken records based on stupidity. For example, at the height or peak of the short-lived bromance between Musk and Trump, we were suffering because Tesla's valuation went through the roof. Luckily, as we predicted, Musk and Trump are two alpha male primates who cannot share the same cage in the power zoo.
This is a short piece to highlight more of the same. Tesla’s financial fundamentals today are hardly thrilling: margins are compressing, electric vehicle growth is slowing, and competition—especially from China—is intensifying and gaining significant ground. By conventional metrics, Tesla’s valuation is completely disconnected from its balance sheet. Yet the stock keeps defying gravity, soaring higher while many of its peers sputter.
Why?
Because Tesla isn’t just a car company. Tesla is a story where Elon Musk is the master storyteller-in-chief.
The Tesla Illusion: Inert Reality, Electrifying Narrative
Strip away the hype, and Tesla's recent earnings show declining operating margins, lackluster growth, and intense price cuts to stay competitive. The EV revolution that Tesla once led is now crowded with credible rivals. The EV mandate and subsidies are gone in the United States. Tesla was a company for Biden times and the clean energy empresarios. In any other company, such fundamentals and political realities would dampen investor enthusiasm. The stock would be selling at pennies on the dollar. But Tesla is different. It continues to command a growth and tech-like valuation, not because of what it is, but because of what Elon Musk says it might become.
Investors aren’t betting on Tesla’s current vehicle sales. They’re betting on the Robotaxi future, a world Musk has repeatedly promised where fully autonomous Teslas will roam city streets, making money while their owners sleep. Musk has boldly claimed that Tesla will become the world’s largest company because of AI-driven mobility, not EV car manufacturing. Whether that dream is months or decades away doesn’t seem to matter. The power lies in the promise.
SpaceX and Starlink: The Musk Halo Effect
What bolsters this Tesla dream is Musk’s track record of delivering the impossible, just not at Tesla.
At SpaceX, Musk has revolutionized the space industry with reusable rockets, near-weekly launches, and deep NASA partnerships. The once-unthinkable is now routine. Each successful Falcon 9 mission, each Starship test, adds to the aura of a man who doesn’t just dream big—he executes.
Then there’s Starlink, the satellite internet project already providing global coverage. It’s a textbook example of long-term thinking turned into scalable infrastructure. Though not part of Tesla, Starlink’s growing success reinforces the Musk brand as a visionary technologist who can build at planetary scale.
To the retail investor, and even to many professional institutional investors, these victories bleed into Tesla’s perception. SpaceX and Starlink become proof-of-concept for Musk's credibility, boosting confidence that Tesla’s AI and autonomous plans, however delayed, will eventually materialize.
Robotaxi: The $10 Trillion Pitch
At the heart of the Tesla thesis is the robotaxi moonshot—a vision where Tesla’s fleet of millions becomes an autonomous ride-hailing network, generating massive recurring revenue with minimal human input. Musk has suggested that this transition could 10x Tesla’s value. To some extent, Musk is promising that his company will make the Transformers movie come true.
Even though Tesla lags behind companies like Waymo and Cruise in actual deployments, and its Full Self-Driving (FSD) software remains controversial and incomplete, Musk’s relentless optimism and deadline-pushing keep investors hooked. Every demo, every tweet, every investor day presentation feeds the dream that Tesla isn’t just building cars, it’s building the nervous system for a new AI-powered urban future.
Whether that future is realistic or fantasy is beside the point. For now, the dream keeps the stock aloft.
The Power of the Musk Myth
Humans are storytelling primates. We sell you stories about supernatural powers in heaven and super US dollars on Earth. In a market driven increasingly by valuation narrative, Elon Musk is perhaps the most powerful individual force in finance. His ability to bridge vision and action, even across legally separate companies, creates an unparalleled halo effect. When SpaceX dazzles, Tesla benefits. When Starlink wows users, Tesla gains legitimacy. And when Musk teases an AI breakthrough, Tesla's valuation swells.
Tesla defies gravity not because it deserves to on paper, but because Musk has convinced millions that financial fundamentals are optional in the age of AI and fantastic space engineering.
Conclusion: Not a Stock, But a Cult
Tesla may be slipping in fundamentals, but it’s soaring in faith. It has become a movement stock or a financial cult. It is part tech bet, part meme, and all faith in Elon Musk. Traditional analysts may scratch their heads, but Musk isn’t speaking to them. He’s speaking to his followers on X.
So long as rockets keep launching, satellites keep connecting the world, and robotaxis remain just around the corner, Tesla will continue to fly high and low in a roller coaster fashion. It is not based on physics, but on theatrics.
And for now, that’s more than enough to keep the stock in orbit.
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