Tesla, Inc. (TSLA) Fair Value & PE Analysis
Auto - Manufacturers · NASDAQ
Current Price
$406.43
PE Ratio (TTM)
339.1x
Intrinsic Value
Outside reliable range
What Is Tesla, Inc.'s Fair Value?
The PE model output for Tesla, Inc. (TSLA) falls outside the range we consider reliable, often because earnings are unusually low, negative, or volatile. Treat any single fair value number with extra caution here.
How our PE model works · Recalculate in PE mode · TSLA intrinsic value (DCF view)
Is Tesla, Inc. (TSLA) Overvalued?
Because the model output for TSLA is outside our reliability range, we do not give an overvalued or undervalued read here. Use the PE calculator below to test your own assumptions instead.
COMPETITIVE MOAT
↑Brand Loyalty & Cult Following
Tesla's brand transcends automotive, fostering intense customer loyalty. This emotional connection drives repeat purchases and organic marketing, a rare feat in the industry.
↑Vertical Integration & Tech Edge
Control over battery production, software, and charging infrastructure provides a significant technological and cost advantage. This integration allows for rapid innovation and optimization.
↑Data Network Effects
The vast fleet of connected Teslas generates invaluable real-world driving data. This data fuels AI development for autonomous driving and product improvements, creating a self-reinforcing cycle.
INVESTMENT RISKS
↓Elon Musk's Diversification & Distraction
Musk's increasing involvement with SpaceX and X (formerly Twitter) could dilute his focus on Tesla. This raises concerns about strategic direction and execution.
↓Intensifying Competition
Legacy automakers and new EV startups are rapidly closing the technology gap. Tesla faces increasing pressure on pricing and market share from a growing field of rivals.
↓Regulatory & Geopolitical Headwinds
Global regulatory scrutiny on EVs and battery production, coupled with geopolitical tensions, could impact supply chains and market access. This creates uncertainty for future growth.
Base case
TSLA base case PE valuation
Base case assumptions: 20.0% annual earnings growth, 50x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-12.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the TSLA PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Tesla, Inc. respond.
Open PE Calculator for TSLACompany Overview
Tesla, Inc. operates globally, specializing in the creation, production, and distribution of electric vehicles, alongside comprehensive energy generation and storage solutions. Its market reach extends across the United States, China, and various other international regions. The company's operations are primarily divided into two main segments: its Automotive business and its Energy Generation and Storage division. Within its Automotive division, Tesla not only provides a range of electric cars but also generates revenue from selling automotive regulatory credits. This segment further encompasses a variety of post-sale services, including non-warranty vehicle support, sales of pre-owned vehicles, various retail products, and car insurance offerings. Customers can acquire Tesla's sedans and sport utility vehicles through direct sales, purchases of used vehicles, or via in-app upgrades often facilitated by the extensive Tesla Supercharger network. The company supports these acquisitions with financing and leasing options. Furthermore, it ensures vehicle upkeep through its proprietary service centers and a fleet of mobile technicians, complemented by both standard and extended vehicle warranty programs. The Energy Generation and Storage segment focuses on the development, manufacturing, setup, sale, and rental of solar power systems and energy storage products, along with associated services. This caters to a diverse clientele, spanning residential users, commercial enterprises, industrial entities, and public utilities. Distribution channels include Tesla's online platform, physical stores, galleries, and a network of collaborative partners. The company also offers servicing and repairs for its energy products, including warranty support, and provides multiple financing avenues for those investing in its solar solutions. Founded in 2003, the corporation was initially named Tesla Motors, Inc., before officially rebranding to Tesla, Inc. in February 2017. Its corporate headquarters are situated in Austin, Texas.
Financial Metrics — TSLA PE Stock Valuation Data
PE Ratio (TTM)
339.1x
PEG Ratio
n/m
Earnings Yield
0.29%
ROE (TTM)
4.8%
Revenue/Share (TTM)
$30.27
Debt/Equity
0.11x
Frequently Asked Questions
What is the PE ratio of TSLA?
The trailing twelve-month PE ratio of TSLA reflects how much investors pay per dollar of Tesla, Inc.'s earnings. This metric is most useful when compared to Auto - Manufacturers peers and the company's own historical range.
Is TSLA overvalued based on PE ratio?
TSLA's PE of 339.1x combined with a PEG ratio of -8.68 provides a growth-adjusted perspective. TSLA has negative earnings, so its PE and PEG ratios are not meaningful here and cannot tell you whether the stock is over or undervalued. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Auto - Manufacturers, a DCF analysis may be more appropriate.
How do I value TSLA stock using PE ratio?
To value Tesla, Inc. using PE: (1) Compare the current PE (339.1x) against the Auto - Manufacturers median to assess relative pricing, (2) check the PEG ratio (-8.68) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of TSLA?
TSLA's PEG ratio is -8.68, calculated by dividing the PE ratio (339.1x) by the expected earnings growth rate. Because TSLA has negative earnings, its PEG ratio is not meaningful and should not be read as a sign of under or overvaluation. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for TSLA stock valuation?
PE ratio gives a quick relative read — how TSLA is priced versus Auto - Manufacturers peers. DCF provides an absolute value based on projected free cash flows. For the most reliable valuation, use PE as a quick comparability screen and DCF for a deeper fundamental analysis. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See TSLA DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Consumer Cyclical valuationsP/E and DCF value TSLA with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.