Overview

• Jeff Sonnenfeld of the Yale School of Management told CNBC that investors put too much faith in Elon Musk and called Tesla the biggest meme stock he has seen.
• Sonnenfeld cited a price-to-earnings ratio well above 200—around 220—contrasting it with far lower multiples at Nvidia, Apple and Microsoft.
• Reporting in the coverage notes Tesla’s global sales fell 14% year over year in the second quarter.
• In California, Tesla sales fell about 12% in 2024 as market share slipped to 52.5% from 60.1% in 2023 even as EV purchases in the state surpassed 2 million for the year.
• An investor letter from Baron Focused Growth Fund said Tesla completed a limited commercial robotaxi rollout in Austin and highlighted a global Model Y refresh, planned unveils of new mass‑market models starting next quarter, progress toward scaling a humanoid robot, and improved sentiment after Musk stepped back from government-related engagements.