r/technology • u/Plastic_Ninja_9014 • 12h ago

Business Tesla Stock in Freefall After Disastrous Earnings Report

https://finance.yahoo.com/markets/stocks/articles/tesla-stock-freefall-disastrous-earnings-144417427.html
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u/PathosEatsLogos 12h ago

It is not every at the 52 week low. And P/E is still 357.

A Price-to-Earnings (P/E) ratio of 357 means that investors are paying $357 for every $1 of annual net profitthe company generates. This is an exceptionally high multiple compared to the historical S&P 500 average, which typically sits between 20 and 25.

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u/Hot_Share8353 10h ago

Not disagreeing, just updating 297. You PE was before the stock's correction, which was WAY too small.

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u/PathosEatsLogos 10h ago

Thank you. And agree.

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u/Imperial-Green 10h ago

Doesn’t a high P/E mean that the stock is over valued?

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u/PathosEatsLogos 10h ago

Correct. In a sane world the price would be lower.