Tesla, Inc. (TSLA) shares have risen about 270% so far this year amid robust demand and unexpected profitability. Given the significant run-up in the stock price, some analysts are starting to question whether the electric carmaker's financial performance justifies its valuation.

Bernstein analyst Tony Sacconaghi downgraded Tesla stock to Underperform from Market Perform during Tuesday's session, saying that shares are overvalued at their current levels. With Tesla's enterprise value matching Toyota Motor Corporation (TM) and Volkswagen AG (VWAGY) combined, the analyst believes that the valuation is unprecedented for a large-cap stock outside of the tech bubble.

Other analysts are confident that Tesla will find new ways to monetize its electric vehicle technology. For instance, Ark Research analyst Tasha Keeney believes that the company could launch a ride-hailing service at a premium price of $4.00 per mile, achieve approximately 50% EBTIDA margins, and become a key competitor to Uber Technologies, Inc. (UBER) and Lyft, Inc. (LYFT).

Chart showing the share price performance of Tesla, Inc. (TSLA)
TrendSpider

From a technical standpoint, Tesla stock briefly fell about 3% in early trading during Tuesday's session before recovering ground to a modest gain. The relative strength index (RSI) remains below overbought levels with a reading of 62.68, but the moving average convergence divergence (MACD) remains in a downtrend. These indicators suggest that the stock could continue to trend sideways or lower before making another move higher.

Traders should watch for consolidation between upper trendline resistance at around $1,830 and lower trendline support and Fibonacci levels of around $1,250 over the coming sessions. If the stock breaks out higher, traders could see a fresh move to all-time highs. If the stock breaks down from support, traders could see a move toward the 200-day moving average at around $686.00, although that scenario appears less likely to occur given the bullish momentum.

The author holds no position in the stock(s) mentioned except through passively managed index funds.