Tesla Inc.’s reveal of its much-hyped self-driving car last week left investors underwhelmed and sent shares plunging. The disappointment also left the Street questioning the shares’ premium valuation.
The so-called robotaxi is a dazzling promise that has been crucial to keeping Tesla’s stock at lofty heights. It’s also a key part of Elon Musk’s vision for the artificial-intelligence driven future of his company. But with numerous questions remaining about technical details of the vehicles and when they will be available, the shares — trading at 75 times forward earnings — are looking expensive to some.