Tesla, Inc. (TSLA)vs General Motors Company (GM)

Quick verdict

Scale is the first thing to understand here, and it runs in opposite directions. At the 4 September 2026 close Tesla carried a market value of roughly $1,398.5bn against General Motors' $77.0bn — about eighteen times larger — yet in the twelve months to June 2026 GM booked $168.4bn of revenue to Tesla's $103.6bn. One company is priced as an emerging technology franchise; the other is priced as a cyclical manufacturer, and both earned modest profits over the same period ($3.8bn at Tesla, $1.9bn at GM). Our scoring lands 4.5 to GM against 1.5 for Tesla, with GM taking valuation, growth and income, and quality, balance sheet and momentum judged too close to call. The gap is driven less by GM's operations — its 1.08% operating margin is thin — than by how little the market is asking investors to pay for them.

At-a-glance comparison

Business model and revenue mix

Both firms sit in Consumer Cyclical, auto manufacturers, and both are US-listed, but the revenue mix differs. Tesla builds electric vehicles and battery-storage products and layers on software, charging and energy services; on a trailing twelve-month basis to June 2026 that generated $103.6bn of revenue and a reported operating profit of $4.4bn. General Motors builds Chevrolet, GMC, Cadillac and Buick vehicles and also runs GM Financial, a lending arm, producing $168.4bn of revenue and $1.8bn of reported operating profit over the same period. The financing business matters when reading GM's balance sheet, since a lender's borrowings are working capital rather than distress. Tesla trades on Nasdaq with about 3.95bn shares outstanding; GM trades on the NYSE with roughly 877m. Both close their fiscal year in December, and both sets of figures come from SEC filings dated July 2026.

Valuation

On every multiple available, the gap is wide, and the verdict goes to GM. Against the 4 September 2026 price, Tesla trades at 327.9 times trailing earnings, 13.5 times sales, 16.1 times book and 141.9 times EV/EBITDA, with a free cash flow yield of 0.41%. GM trades at 39.2 times trailing earnings, 0.46 times sales and 1.24 times book, with a free cash flow yield of 18.7%. Note that both P/E figures rest on depressed trailing profits — $3.8bn at Tesla and $1.9bn at GM — so neither is a clean read on normalised earnings power. The price-to-sales and price-to-book comparisons are the starker ones: Tesla is valued at more than ten times GM's sales multiple and roughly thirteen times its book multiple, while generating less revenue. No EV/EBITDA figure is available for GM.

Growth profile

Neither record is straightforward. Over the three years to fiscal 2025, revenue compounded at 5.19% at Tesla and 5.27% at GM — effectively the same pace. Stretching back to the 2020 base year separates them: Tesla compounded revenue at 24.63% against GM's 9.1%, though that five-year Tesla figure starts from a much smaller 2020 revenue base and flatters the recent trend, which the three-year number does not support. Earnings have moved the other way at both. Tesla's EPS compounded at -33.18% over three years from 2022; GM's fell at -18.9% over three years and -5.46% over five. No five-year EPS figure is available for Tesla. Our verdict favours GM on growth: the revenue pace is a dead heat, and GM's earnings decline has been the shallower of the two on both windows measured.

Profitability and quality

Quality is scored a tie, and the figures explain why neither side pulls clear. Tesla converts more of each sales dollar: an 18.85% gross margin, a 4.22% operating margin and a 3.67% net margin in the twelve months to June 2026, against GM's 1.08% operating margin and 1.16% net margin. But returns on capital are low at both. Tesla's return on equity is 4.61% and its return on invested capital 4.01%, sitting on $86.9bn of shareholders' equity; GM's return on equity is 2.99% on $62.0bn of equity. Cash generation reverses the ranking entirely — GM produced $14.4bn of free cash flow over the period against Tesla's $5.8bn, despite the smaller net income, reflecting the different capital and financing structures. Margin quality to Tesla, cash conversion to GM: genuinely too close to call. No gross margin figure is available for GM.

Balance-sheet risk

This factor is also judged a tie, though for different reasons on each side. Tesla holds $15.2bn of cash against $9.1bn of total debt, giving net debt to EBITDA of -0.63 times — a net cash position — with a current ratio of 1.94 and interest cover of 13.09 times. GM reports $20.1bn of cash at 30 June 2026 and a current ratio of 1.14; no total debt, net leverage or interest cover figures are available, and in GM's case a headline debt number would in any event blend industrial borrowings with GM Financial's lending book, which is not comparable to Tesla's balance sheet. What can be said is that Tesla's liquidity ratio is the stronger of the two and its net cash position is verified, while GM holds the larger absolute cash pile. Neither shows strain on the data available.

Price performance and shareholder returns

Income is the one factor with a clear separation, and it goes to GM. Tesla pays no dividend — its dividend yield, payout ratio and buyback yield are all zero — so shareholders are dependent entirely on price movement. GM paid $0.66 per share over the twelve months to June 2026, a 0.75% yield at the 4 September 2026 price, from a payout ratio of 59.98%. The larger element is repurchases: GM's buyback yield of 8.83% means a substantial share of the $77.0bn market value was returned through share count reduction over the period, against roughly 877m shares outstanding. That buyback pace also shrinks the equity base, which is worth bearing in mind when reading GM's 2.99% return on equity — the denominator is being reduced. Combined cash returns clearly favour GM here.

Which stock fits which investor

A value-oriented investor is pointed towards GM: 0.46 times sales, 1.24 times book and an 18.7% free cash flow yield are the kind of figures Tesla's 13.5 times sales and 0.41% yield cannot approach. Income seekers have only one option, since Tesla distributes nothing, while GM combines a 0.75% dividend yield with an 8.83% buyback yield. Growth scoring also favours GM, because three-year revenue growth is near-identical at roughly 5% for both while GM's earnings decline has been less severe. Quality is a genuine tie — Tesla's 18.85% gross margin and 4.01% ROIC against GM's $14.4bn of free cash flow. An investor drawn to Tesla is therefore paying for expectations not yet visible in the trailing twelve months to June 2026, in which the company earned $3.8bn.

• Value: GM
• Growth: GM
• Income: GM
• Quality: Too close to call

Frequently asked questions

Which company is bigger, Tesla or GM?

It depends on the measure. By market value at the 4 September 2026 close Tesla is far larger, at roughly $1,398.5bn against GM's $77.0bn — about eighteen times the size. By revenue the ranking reverses: GM booked $168.4bn in the twelve months to June 2026 versus Tesla's $103.6bn.

Why is Tesla's P/E ratio so high?

Tesla trades at 327.9 times trailing earnings because its $1,398.5bn market value is set against just $3.8bn of net income in the twelve months to June 2026, a 3.67% net margin. GM's 39.2 times multiple is lower but also rests on depressed profits of $1.9bn.

Does Tesla pay a dividend?

No. Tesla's dividend yield, dividend per share and payout ratio are all zero, and its buyback yield is also zero. GM by contrast paid $0.66 per share over the twelve months to June 2026, a 0.75% yield, alongside an 8.83% buyback yield.

Which has the stronger balance sheet?

Our scoring calls it a tie. Tesla holds $15.2bn of cash against $9.1bn of debt, net leverage of -0.63 times, a 1.94 current ratio and 13.09 times interest cover. GM holds more cash in absolute terms at $20.1bn but a tighter 1.14 current ratio; its debt is not directly comparable because of GM Financial.

Who generates more free cash flow?

GM, by a clear margin: $14.4bn in the twelve months to June 2026 against Tesla's $5.8bn. Relative to market value that is a free cash flow yield of 18.7% for GM versus 0.41% for Tesla at the 4 September 2026 close.

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