Tesla trades at 381x trailing earnings while Ford offers 8x forward earnings and a 4.5% dividend yield.
Tesla’s valuation metrics continue to diverge sharply from traditional automakers, with its $1.58 trillion market cap supported by long-term promises rather than current fundamentals. The company’s trailing price-to-earnings ratio stands at 381x, compared to Ford’s 8x forward earnings, while Tesla’s net income dropped 47% and profit margins remain below 4%.
Ford’s software subscription business, Ford Pro, reported 879,000 subscriptions, growing 30% year-over-year with an 11.4% EBIT margin. Tesla’s Q4 2025 vehicle deliveries fell 16% year-over-year to 418,227 units, and full-year revenue declined 2.93%, underscoring execution challenges.
Traders seeking short-term exposure to Tesla’s potential downside are turning to inverse ETFs like TSLQ, which uses derivatives to deliver inverse performance. The shift reflects growing skepticism over Tesla’s ability to meet delayed timelines for projects like the Cybercab and robotaxi.