Tesla (TSLA) Declines More Than Market: Some Information for Investors

Company Performance - Tesla's shares have increased by 38.87% over the past month, outperforming the Auto-Tires-Trucks sector which gained 20.36% and the S&P 500 which gained 1.05% [1] - The upcoming earnings disclosure is anticipated to show earnings per share (EPS) of $0.77, an increase of 8.45% year-over-year, with revenue expected to reach $27.95 billion, reflecting an 11.06% increase from the same quarter last year [5] - The Zacks Consensus Estimates for the entire fiscal year project earnings of $2.47 per share and revenue of $100.02 billion, indicating a decrease of 20.83% in earnings and an increase of 3.36% in revenue compared to the previous year [2] Valuation Metrics - Tesla currently has a PEG ratio of 9.25, significantly higher than the average PEG ratio of 1.75 for the Automotive - Domestic industry [7] - The company is trading at a Forward P/E ratio of 187.32, compared to the industry average Forward P/E of 11.65, suggesting that Tesla is trading at a premium [11] Industry Context - The Automotive - Domestic industry is ranked 148 in the Zacks Industry Rank, placing it in the bottom 42% of over 250 industries [4] - The Zacks Rank system indicates that Tesla holds a Zacks Rank of 2 (Buy), which has historically shown strong performance with 1 stocks averaging a 25% annual return since 1988 [3][6]