Highly Regarded

Is Tesla Inc. (TSLA) Stock Undervalued or Overvalued?

Trailing-twelve-month multiples vs Consumer Discretionary sector peers in our coverage

1071% Premium TTM fundamentals · sector averages from covered peers

TSLA trades at 352.6× TTM earnings — a 1071% premium to its Consumer Discretionary sector average of 30.1× in our coverage.

The Numbers

P/E (TTM)

352.6×

Sector avg: 30.1×

P/S (TTM)

15.1×

Sector avg: 2.5×

Market Cap

$1.43T

EPS (TTM): $1.08

Revenue (TTM)

$94.83B

Net income: $3.85B

Consumer Discretionary Peer Comparison

How TSLA's multiples stack up against sector peers we cover. Click any peer for its own valuation breakdown.

Stock Price P/E (TTM)
TSLA This page $380.82 352.6×
AMZN $247.26 34.5×
NKE $43.76 25.7×

Is the Premium Justified?

July 12, 2026

Tesla's P/E of 377.4x significantly exceeds the consumer discretionary sector average of 145.9x, primarily driven by investor expectations for its long-term potential as an AI platform business, encompassing autonomous vehicles and humanoid robotics. Recent Q2 2026 delivery figures of 480,126 vehicles substantially surpassed Wall Street estimates, indicating robust demand for its Model Y and Model 3, and a strong rebound in sales. The company also reported record energy storage deployments. While there is potential for gross margin expansion, the high valuation is also pressured by repeated delays and significant capital expenditures associated with its ambitious autonomous driving and robotics projects, with some analysts suggesting that optimism for these new growth engines may be built into the valuation prematurely.

Sources

Frequently Asked Questions

Is TSLA overvalued or undervalued?
On trailing-twelve-month earnings, TSLA trades at 352.6x versus a Consumer Discretionary sector average of 30.1x in our coverage — a 1070.9% premium. Whether that's justified depends on growth, margins, and risk; see the context above.
What does the P/E ratio tell you?
Price-to-earnings compares a company's share price with its per-share profits. A higher multiple means investors pay more per dollar of earnings — often for faster expected growth — while a lower one can signal slower growth or higher perceived risk.
Why compare against the sector average?
Valuation multiples vary structurally between industries — software typically trades richer than banks or energy. Comparing TSLA with its own Consumer Discretionary peers is more informative than comparing against the whole market.
Is a cheap stock automatically a good buy?
No. A discount can be justified by weak growth or elevated risk (a "value trap"), and a premium can be earned by quality and consistency. Valuation is one input — pair it with the fundamentals and the AI context on this page.

Methodology

Multiples are computed from trailing-twelve-month fundamentals (from company filings) and the latest share price: P/E is price ÷ diluted EPS, and P/S is market cap ÷ revenue. Sector averages use the Consumer Discretionary names in our 50-stock coverage with positive earnings — a deliberately like-for-like, if imperfect, benchmark.

Stocks with negative trailing earnings are compared on price-to-sales instead. Multiples update with prices and fundamentals; AI context refreshes weekly.

Not Financial Advice

This page is for education and information only. Indicators are mechanical calculations, AI commentary can contain errors, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a qualified financial advisor. See our full disclaimer.

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Same question, Consumer Discretionary peers

HD AMZN NKE