Prominent pseudonymous crypto trader DonAlt on Friday challenged Tesla (NASDAQ:TSLA) bulls to justify the company’s $1.3 trillion valuation, questioning the AI, cars, and X as the stock fell 0.5% testing the 200 EMA at $394.
The Bear Case
DonAlt posted on X asking why Tesla deserves its current market cap. “The AI kind of sucks in comparison to the competition. The cars suck horrendously in comparison to the competition in China. Twitter isn’t hugely successful. Is it all about SpaceX?”
The auto business is foundering as Q4 2025 revenue fell to $94.8 billion from $97.7 billion in 2024—the first annual decline in company history.
Net income plunged 61% year-over-year in Q4 and 46% for the full year.
Moreover, full-year deliveries of 1.636 million fell roughly 9% from 2024, marking two consecutive years of declining deliveries.
European sales are also cratering. Tesla’s France sales fell 42% in January to just 661 …