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Tesla Sales in China Are Popping, But That Means Nothing If You Canโ€™t Stomach TSLA Stockโ€™s Absurd P/E Ratio

Here is my take before the details. I think Tesla (TSLA) stock still belongs in a long-term investor's portfolio, but only for those who can stomach an elevated price-to-earnings multiple. The China sales pop and the worldwide rollout of its driving software strengthen the bull

Tesla Sales in China Are Popping, But That Means Nothing If You Canโ€™t Stomach TSLA Stockโ€™s Absurd P/E Ratio
Yahoo Finance โ€” 6 June 2026
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Here is my take before the details. I think Tesla (TSLA) stock still belongs in a long-term investor's portfolio, but only for those who can stomach an elevated price-to-earnings multiple.

The China sales pop and the worldwide rollout of its driving software strengthen the bull case. Yet TSLA stock trades at a punishing valuation. So, I view Tesla as a name to accumulate on weakness.

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I have tracked Tesla's slow shift from a carmaker to a software-and-robotics story for years. May's numbers out of China are the kind of data point that keeps the story breathing.

According to a CNBC report, sales of Tesla cars built in China rose 40% in May. Preliminary data from the China Passenger Car Association (CPCA) suggests that Tesla delivered 85,982 new energy vehicles (NEVs) from its Shanghai plant, a 39.4% rise from May 2025.

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