23 July 2025

Tesla's Stock Seems Wildly Overpriced

Tesla closed today at nearly $333 a share but fell in after-hours trading.

Among the 10 most valuable companies in the world, nine have an average price-to-earnings (P/E) ratio of 37. Tesla’s P/E is 183. That’s more than 9 times higher than its peers - a valuation that implies soaring future profits.

But today, Tesla reported that its earnings were down 18% year over year — not exactly the trajectory you'd expect from a company priced for explosive growth.

If Tesla were valued like the rest of the top 10, its stock might trade closer to $70 than $333. At some point, it’s fair to ask whether Tesla should be priced like a transformative business - or a meme stock.

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