Elon Musk has once again left Wall Street reeling as Tesla’s market capitalization reportedly soared to an astonishing $11 trillion in April 2025, despite a 71% profit plunge and a 9% revenue drop in Q1. Reuters and NPR reported Tesla’s net income fell to $409 million, with vehicle deliveries down 13% to 336,681 units—its worst quarter since 2022. Yet, the stock surged, baffling investors and cementing Musk’s reputation as the “world’s greatest dream seller.” How does Tesla command such a valuation amid plummeting fundamentals?

The answer lies in Musk’s narrative of Tesla as an AI and robotics pioneer, not just an automaker. Investors, per USA Today, value Tesla’s electric vehicle business—90% of its $19.3 billion revenue—at less than a quarter of its market cap. The bulk rests on unproven ventures: robotaxis, self-driving tech, and Optimus humanoid robots. Musk’s promise of a June 2025 robotaxi launch in Austin, reiterated on X, has fueled optimism, despite his decade-long history of missing autonomy deadlines. CNBC notes rival Waymo’s lead in commercial robotaxis, yet Tesla’s forward price-to-earnings ratio, nine times higher than BYD’s, reflects unwavering faith in Musk’s vision.

Global backlash to Musk’s political role in Trump’s Department of Government Efficiency (DOGE) hasn’t dented investor enthusiasm. Protests and vandalism, linked to his far-right ties, cratered sales in Europe (down 45%, per Forbes) and hurt brand appeal among liberal EV buyers. Newsweek reported a 75% sales surge for China’s BYD, eroding Tesla’s market share. Still, posts on X, like @muskonomy’s, highlight insider buying and 1 million Cybertruck preorders as signs of resilience, with Tesla’s stock up 25% year-to-date.

Musk’s pivot from mass-market EVs to futuristic tech—abandoning the $25,000 Model 2, per Reuters—hasn’t shaken bullish analysts. Truist Securities attributes just 9% of Tesla’s value to car sales, with 34% tied to robots and 21% to driverless tech. Nasdaq warns that even a tenfold profit increase to $70 billion would leave Tesla’s P/E ratio at 12.5, pricier than General Motors’ 7.5. Yet, Musk’s charisma and bold predictions, like a 99% robotaxi market share (Motley Fool), keep investors hooked.

Skeptics, like JP Morgan’s Ryan Brinkman, question how long Tesla’s stock can “remain divorced from fundamentals.” CNN notes Musk’s reduced DOGE role, starting May 2025, boosted shares 4% in after-hours trading, signaling relief he’ll refocus on Tesla. But with tariffs looming and aging models like the Model Y lagging, can Musk deliver? Tesla’s $11 trillion valuation—far exceeding the $1.5 trillion peak in December 2024—defies gravity, driven by dreams of a driverless, robotic future that may or may not materialize.