The surge is an illusion! Tesla becomes the only stock among the 'Magnificent Seven' to turn positive, yet is warned of an impending cliff dive

Tesla has become the first company among the seven major tech stocks to return to its 200-day moving average, but this rebound may just be a bubble. Down over 30% year-to-date, investors seem indifferent to performance, paying for the 'dream' instead.

Redburn warns: Tesla's halo is fading. Analysts bluntly state that the coming year will be filled with challenges: pricing pressure on electric vehicles, tariff risks, tightening cash flow, and even U.S. subsidies could be canceled. Once clean car subsidies lapse, demand could plummet.

Although the stock price just rebounded by 18%, Redburn has set a target price of $160, indicating a potential drop of up to 44% compared to the current market value of nearly $286.

The Model Y facelift shows no highlights, and the 'affordable new car' yet to be unveiled in June seems more like a gimmick. The only new vehicle in the past five years remains the 2019 Model Y, and innovation stagnation is no longer news.

Worse yet, the valuation bubble is astonishing: a price-to-earnings ratio of 164 times and a price-to-sales ratio of 9.5 times, far exceeding the standards for healthy companies. Ninety percent of the market value is not based on actual performance, but on speculation around unrealized concepts such as 'autonomous taxi' and 'robots.'

Tesla now relies not on products, but on faith. Unfortunately, the market is waking up. Will you still pay for its 'future'?