The bulk of Tesla's past stock performance has come from the growth of its EV division. Pioneering the industry, Tesla dominated new EV sales for a few years with its Model 3 and Y concepts, leading revenue to come close to $100 billion and operating income to soar past $10 billion. Now, these figures are all moving in the wrong direction.

What Happened? Shares of electric vehicle pioneer Tesla (NASDAQ:TSLA) jumped 6.1% in the afternoon session after CEO Elon Musk and President Donald Trump appeared to de-escalate their recent tensions.

Doug and Lee argue that Tesla’s valuation is increasingly fragile due to political headwinds, reputational damage, and slowing international sales, making it one of the riskiest mega-cap stocks today.