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

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.

The stock gained 23% last month as investors looked ahead to the start of the EV maker’s self-driving taxi service.