Tesla stock remains wildly overvalued
Tesla's earnings per share (EPS) plunged 53% to $2.04 in 2024. Shrinking EV sales were one reason for the decline, but the company also cut prices for most of its cars to shore up demand, which eroded its profit margins.
Despite the 44% drop in Tesla stock from its all-time high, it still trades at an eye-watering price-to-earnings (P/E) ratio of 128.6. That makes it significantly more expensive than Apple, Microsoft, Nvidia, Amazon, and Alphabet:
