Tesla just posted record quarterly profits, with one measure of earnings passing the $1 billion mark for the first time.
But in order to justify its sky-high stock price, the automaker will need to overcome a growing list of challenges.
What's happening: A global chip shortage is snarling production, while the business environment in China, a crucial market, remains fraught. Competitors are gaining ground and Tesla faces a safety investigation tied to a fatal crash in Texas.
Shares are down 2% in premarket trading.
Some Wall Street analysts still see a solid case for Tesla's stock, which is trading at more than 1,100 times its earnings, according to data from Refinitiv.