Tesla Is Still Selling Glossy Future - GM Just Shipped 111% More EVs
Tesla's Valuation Is Still From Another Planet
For context, Microsoft Corp (NASDAQ:MSFT) and Amazon.com Inc (NASDAQ:AMZN) sit around 39x and 37x (per Benzinga Pro data), while Toyota Motor Corp (NYSE:TM) and General Motors Co (NYSE:GM) trade at just 7 times earnings. Somehow, Tesla is still priced like it's leading a future that hasn't quite arrived.
That future was easier to believe in back in 2020, when Tesla shares soared nearly 700% and the company truly dominated the EV narrative. But the landscape has shifted – and fast.
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Competition Isn't Creeping—It's Sprinting
On Tuesday, GM reported that its electric vehicle sales surged 111% year-over-year in the second quarter. Sure, it's off a smaller base, but the trajectory is undeniable.
Meanwhile, Tesla's own second-quarter vehicle sales fell 14%. In a market that once gave Tesla credit for being the only EV in town, that's a glaring reversal.
GM isn't the only challenger. Chinese automakers are rapidly scaling up production and expanding their global reach, offering more affordable alternatives with comparable technology. Tesla no longer feels like a monopoly. It feels like a frontrunner being caught from all sides.
Can Hype Still Outrun The Numbers?
Elon Musk is still Elon Musk—and few CEOs can spin a narrative quite like him. He's teased robotaxis, humanoid robots, and full autonomy as Tesla's next growth engine. But with each sales miss, the pressure mounts to deliver something—anything—that justifies the valuation.
Tesla's earnings call on Wednesday may offer another round of ambitious promises. But this time, with competitors closing in and fundamentals weakening, even the meme premium may need a reality check.
For now, Tesla is still trading like it's 2020. The rest of the EV world, however, is firmly in 2025.
TSLA Price Action: Tesla shares were up 0.31% at $333.13 on Wednesday, according to Benzinga Pro.
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This article Tesla Is Still Selling Glossy Future - GM Just Shipped 111% More EVs originally appeared on Benzinga.com
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