Tesla would need to grow earnings at a very high rate over an extended span to justify its current stock multiple.

Musk has long promised an autonomous Tesla vehicle, with estimates of delivery that were always “two or three years away.” Now a hand-selected group will be able to see the potentially game-changing car in action in the Texas capital for themselves.

During the month leading up to the Oct. 10 unveiling of the company's self-driving robotaxi, shares of the electric vehicle (EV) stock soared as much as 16%. This is par for the course for a volatile momentum stock such as Tesla, which often moves in overly pronounced directions depending on the current narrative.