However, the market distinguished between spending connected to visible near-term margin conversion and spending associated with core margin compression and an indefinite payout period. While Alphabet had a modest reversal, Tesla, Inc. (NASDAQ:TSLA) fell as much as 15% intraday, marking one of the company’s worst single-day falls in history. Tesla, Inc. (NASDAQ:TSLA) trades at a high forward earnings multiple that implies enormous software-like margins, despite its fundamental operational profile of a 1.4% operating margin business that burns cash. Insider Monkey’s Bottom LineTesla, Inc. (NASDAQ:TSLA) is experiencing an unsustainable mismatch between its premium tech valuation and its shrinking automotive margins. If you are looking for an AI stock that is more promising than TSLA and that has 10,000% upside potential, check out our report about this cheapest AI stock.