Tesla Trades at 350 Times Earnings. Here's What Has to Be True for That to Make Sense.
Tesla shares trade at a huge premium to other EV stocks.
Overview
Tesla (NASDAQ: TSLA) stock currently trades at about 350 times earnings. That's a towering premium to other automotive stocks. Ford Motor Company (NYSE: F), for example, trades at just 11 times earnings.
Many competing pure-play electric vehicle (EV) stocks don't currently generate profits, making them difficult to compare on an earnings basis to Tesla. On a revenue basis, however, Tesla currently trades at 13 times sales. Rivian (NASDAQ: RIVN), meanwhile, trades at just 3.2 times sales, while Lucid Group (NASDAQ: LCID) hovers at less than 1 times sales.
Details
Any way you look at it, Tesla stock trades at a premium to its various peer groups.
Source
Originally published at www.fool.com.
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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.