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Tesla (TSLA) Outpaces Stock Market Gains: What You Should Know

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Tesla (TSLA - Free Report) closed at $438.69 in the latest trading session, marking a +1.29% move from the prior day. The stock outperformed the S&P 500, which registered a daily gain of 0.58%.

Heading into today, shares of the electric car maker had gained 24.82% over the past month, outpacing the Auto-Tires-Trucks sector's gain of 14.95% and the S&P 500's gain of 3.68%.

The upcoming earnings release of Tesla will be of great interest to investors. The company's earnings report is expected on October 22, 2025. On that day, Tesla is projected to report earnings of $0.5 per share, which would represent a year-over-year decline of 30.56%. At the same time, our most recent consensus estimate is projecting a revenue of $25.85 billion, reflecting a 2.64% rise from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $1.6 per share and a revenue of $92.85 billion, demonstrating changes of -33.88% and -4.96%, respectively, from the preceding year.

Investors should also pay attention to any latest changes in analyst estimates for Tesla. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.3% higher. Tesla is currently a Zacks Rank #3 (Hold).

With respect to valuation, Tesla is currently being traded at a Forward P/E ratio of 270.4. This valuation marks a premium compared to its industry average Forward P/E of 12.85.

We can also see that TSLA currently has a PEG ratio of 11.3. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Automotive - Domestic industry currently had an average PEG ratio of 2.42 as of yesterday's close.

The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. At present, this industry carries a Zacks Industry Rank of 171, placing it within the bottom 31% of over 250 industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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