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.

Tesla has been testing its robotaxis without a human driver for several days, and the service should roll out to customers next month, CEO Elon Musk says.