Choosing between two of the most iconic names in the stock market — Apple and Tesla — isn’t as simple as picking a favorite brand. Both are members of the elite “Magnificent 7” group of tech giants, and both offer unique opportunities and risks for investors. But when it comes to long-term value, growth potential and financial stability, how do they really compare?
Discover More: Self-Made Millionaires Suggest 5 Stocks You Should Never Sell
For You: 10 Unreliable SUVs To Stay Away From Buying
Whether you’re a seasoned investor or just starting out, understanding key metrics like the price-to-earnings (P/E) ratio can help you make smarter decisions. This ratio, which compares a company’s stock price to its earnings per share, offers insight into how the market values a company’s profitability.
To better understand the strengths and weaknesses of each company, GOBankingRates reached out to stock experts for their insights. Here’s what to consider before adding either stock to your portfolio.
Tesla’s stock is currently trading at a P/E ratio of over 178, which is extremely high, according to Scott Ritchie, an investing expert at Stoculator.
Tesla is a unique company because it straddles two worlds: automotive and tech. As a tech company, Tesla is heavily invested in artificial intelligence and robotics, but Ritchie has a warning for investors. “It is still too soon to bet on it at this valuation,” he said, “especially since most of Tesla’s developments are focused on autonomous driving, which still faces a lot of challenges including regulatory ones that could delay it for at least a couple of years.”
Compared to other tech companies like Microsoft, Meta, Google, Apple and Amazon, Tesla still has a higher P/E ratio, but this may be more due to its leadership as a car company.
As a car manufacturer, Tesla’s market cap of nearly $1 trillion dwarfs that of legacy automakers like Ford and General Motors. However, recent performance has raised concerns. In Q2 2025, Tesla’s vehicle deliveries dropped 13.5%, falling to 384,122 units compared to 443,956 in the same period last year. This decline has impacted earnings and shaken investor confidence in some markets.
Additionally, according to David Materazzi, CEO of Galileo FX, an automated trading platform, “[Tesla hasn’t] yet proved that they can dominate the EV market. They don’t have as much money in the bank, and it’s still quite a young company.”
