Tesla’s Market Value Surges Despite EV Demand Concerns

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Tesla Inc. shares have nearly doubled in value since the last time the company reported earnings — a set-up that usually spells high expectations for upcoming results. But its car-selling business has become a sideshow to Elon Musk’s political prominence.

A large chunk of its mammoth market value has been propped up by hopes it will be among the first to develop and market fully self-driving vehicles. Those expectations were turbocharged by Donald Trump’s election victory, as investors bet the closeness between Tesla’s CEO and the U.S. President will pave the way — ignoring cash flow risks from a possible roll-back of EV incentives.

It’s almost as if the company’s ability to profitably build and sell the cars no longer counts. Trading in the options market suggests investors are preparing for a 7% move in either direction off Tesla’s fourth-quarter earnings report, due after market close Jan. 29. That would be the stock’s smallest post-results swing since October 2022. Shares fell as much as…