Reflections On Investing: Tesla’s Fountain Of Youth Revisited

Tesla’s P/E of 114 is unique in the auto industry.

white robot near brown wall

Image Source: Unsplash


The P/E for automobile manufacturers is normally very low. Ford F, GM and Toyota TM currently trade at 7 times earnings. Tesla’s TSLA P/E of 114 is unique in the auto industry. Elon Musk’s promises of future growth from humanoid robots and robotaxis have sustained Tesla’s high price but investors should be cautious as stock prices built on future growth expectations can drop just as quickly as they rise.

Video Length: 00:08:19


More By This Author:

The EV Shakeout
Reflections On Investing: Risk
Investor Memo Q4 2024: Valuation, Momentum, And The Risk Of A Market Correction

STOCKS IN THIS ARTICLE

Comments