Shares of electric vehicle (EV) giant Tesla Inc. (NASDAQ: TSLA) closed last week at $440, marking the stock's highest finish of 2025 so far. It capped off a remarkable run of more than 100% since April’s lows and nearly 30% in the past two weeks alone. Ongoing optimism around the company’s non-EV initiatives and CEO Elon Musk’s recent $1 billion insider buy have sent the stock soaring, with bulls continuing to set their sights even higher.
But all of that upward momentum comes with a catch. Tesla’s price-to-earnings (PE) ratio has soared past 250, its richest level in four years, while its Relative Strength Index (RSI) is now flirting with extremely overbought territory. With the company’s Q3 earnings report due in the middle of October, expectations and stakes could not be higher. For investors, this update will likely decide whether Tesla is on its way to $600 or back down toward $300. Let’s jump in and take a look at the argument for each path.
