Key Takeaways Tesla shares gained ground in extended trading on Wednesday as optimism over the automaker's self-driving outlook trumped fourth-quarter results that came in below Wall Street’s expectations.

That said, Tesla remains one of the most expensive stocks in the market right now. There are very few examples where paying 122 times forward earnings turned out to be a good investment. If Tesla’s automation promises end up taking years and years like FSD, there is going to be a lot of downside risk. It might be time to start taking some profit.