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?
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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.
The Case for Tesla
- Stock price: $308.95
- Market cap: $997.5 billion
- 52-week high: $488.54
- 52-week low: $191.48
- P/E ratio: 178.34
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.”
Adding to the complexity is CEO Elon Musk, whose public persona and political involvement continue to influence Tesla’s brand and stock performance.
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The Case for Apple
- Stock price: $203.40
- Market cap: $3.04 trillion
- 52-week high: $260.10
- 52-week low: $169.21
- P/E ratio: 31.07
Buying Apple is often considered a sure thing in stock, because of its dedicated consumer base and wide variety of products featuring Apple Intelligence. However, Ritchie pointed out that Apple has seen very slow growth lately, both in sales and innovation of new products.
“Last year they announced that they cancelled their decade-long electric-car project after spending $10 billion on it over the course of 10 years,” the investing expert said. “Their latest innovative product, the Apple Vision Pro, kicked off with a great debut but seems to have lost the attention soon after.”
The canceled car project is likely a good thing, Ritchie said, because it could have been a “distraction” that took Apple away from what it’s good at. Overall, Ritchie added, “Apple could be a better investment than Tesla currently. It is more stable in terms of financial valuation and performance. It has a wider range of products with much less production challenges, which, combined with the larger customer base, makes a great profit-making formula.”
Materazzi agreed. “Apple is an extremely successful company with a long history,” he said. “They have a lot of cash in the bank and their stock is often considered safe, relatively speaking, among tech stocks. Apple is already a leader. Tesla is not.”
Final Take To GO: Which Is the Better Buy?
You probably can’t go wrong investing in either, or both, said Materazzi. “Both stocks are frequently purchased by short-term speculators, even if Tesla is the original meme stock and may have a slight advantage in this.”
Tesla’s products may have better immediate returns, but “their products are more vulnerable in the marketplace,” Materazzi added. Apple is considered more stable but that also brings lower returns.
Ultimately, if you’re trying to decide between the two, you should consult with a financial advisor who understands your financial goals and risk tolerance.
Caitlyn Moorhead contributed to the reporting for this article.
Editor’s note: Stock information sourced via MarketWatch and is accurate as of Aug. 5, 2025.
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This article originally appeared on GOBankingRates.com: Apple Stock vs. Tesla Stock: Which Tech Giant Is a Better Buy Now?
