As Tesla struggles with negative cash flow and a 59% EPS decline, GM's disciplined growth and low valuation have made it the superior performer in the automotive sector over the past year.
Eisman highlights Tesla's 220x 2026 P/E, 59% EPS decline from peak, negative FCF, and missed Q2 earnings, questioning the robotaxi growth narrative.
GM beat Q2 estimates, raised guidance, and trades at a low 6.5x 2026 P/E, with strong stock returns, contrasting with Tesla's high valuation.
Steve Eisman, the famed investor, has raised alarms over Tesla's 220x 2026 P/E ratio, noting a 59% collapse in EPS from 2022 peaks and negative free cash flow. While Tesla pivots heavily toward a $25 billion-plus robotaxi expansion, General Motors continues to deliver strong earnings beats and trades at a modest 6.5x multiple, significantly outperforming Tesla in both stock returns and fundamental stability.
Eisman points to Tesla's 220x 2026 P/E ratio and a 59% decline in EPS from 2022 levels, arguing that the valuation relies on speculative robotaxi success rather than current fundamental performance.
GM has returned over 43% in the past year while Tesla has lost nearly 15%, with GM consistently beating earnings estimates and maintaining a much lower valuation multiple.