Tesla (NASDAQ: TSLA) shares are retreating after a post-election surge. Tesla's rapid ascent in the past decade is mesmerizing, as the business disrupted the auto industry with its popular EV models.

Tesla stock has had a difficult couple of weeks after its epic run, making it a good time to check in with some technical stock market analysts to help figure out what comes next. Coming into Friday trading,

Tesla stock soared in the last two months of 2024, following the election of Donald Trump, but have slumped almost 18% in less than a month.

Before investors jump in to buy the stock before Jan. 2, they need to consider its valuation. Based on the company's trailing-12-month earnings per share of $3.65, the stock trades at a price-to-earnings ratio (P/E) of 125.That makes it one of the priciest large-cap tech stocks in the U.S. -- it's more than twice as expensive as Nvidia!

Shares of Tesla Inc. inched 0.15% higher to $394.94 Wednesday, on what proved to be an all-around mixed trading session for the stock market, with the Dow Jones Industrial Average rising 0.25% to 42,635.

Tesla's robotaxis and AI push are appealing, but expectations may be inflated. Learn why TSLA stock could face challenges with overestimated future sales.