Key Points - Tesla stock trades at a sky-high price-to-earnings ratio of 321, making it 12 times as expensive as the S&P 500 average. - The S&P itself could be vulnerable to a sharp sell-off due to its own elevated valuation, which could send Tesla stock plunging to $100 (or less). - Tesla's electric vehicle business is recovering in 2026, but the company is falling behind its competitors in other industries like autonomous driving. The benchmark S&P 500(SNPINDEX: ^GSPC) is hovering near a record high, but the risk of a sell-off might be rising due to the ongoing geopolitical tensions in the Middle East, the stubbornly high inflation rate, and the growing chance of an interest rate hike before the end of 2026. The S&P 500 currently has a Shiller cyclically adjusted price-to-earnings (CAPE) ratio of 41.6, its highest valuation since the dot-com bubble in 2000. That makes the index especially vulnerable to downside, and if it were to enter a bear market by experiencing a 20% decline, many stocks with elevated valuations would likely also suffer sharp corrections. Missed Nvidia in 2009? This Rare Signal Is Flashing Again.In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue ยป The S&P 500 last traded in bear territory during 2022 and 2023, which sent Tesla(NASDAQ: TSLA) stock plummeting by 75% to just $100. The electric vehicle (EV) giant recovered to set a new record high of $489 last year, but it's currently on the back foot once again. Here's why I predict it will fall below $100 if the S&P enters another bear market. Tesla stock is trading at a sky-high valuation Tesla used to be