Tesla (TSLA) Could Be 223% Overvalued After Flat Revenue And Lower Profit

Tesla (TSLA) has just reported third quarter 2026 earnings that showed revenue broadly flat at US$28.0b while net income declined to US$787 million, sharpening investor focus on profitability and capital allocation. Tesla's recent earnings setback has played out against a sharp swing in sentiment, with the share price up 36.6% over 90 days and 9.5% over the past month, yet still down 7.0% year to date and delivering an 11.5% decline in 1-year total shareholder return. The 3-year total shareholder return of about 2x signals that long-term momentum remains intact, but nearer term enthusiasm is being tested by profitability pressure and debate over the potential SpaceX merger and robotaxi rollout.