Is Tesla Stock Underperforming the S&P 500?

Is Tesla Stock Underperforming the S&P 500?

Aritra Gangopadhyay

Fri, August 28, 2026 at 5:09 PM GMT+3 2 min read

• TSLA -1.71%
• ^GSPC -0.25%

Austin, Texas-based Tesla, Inc. (TSLA) designs, develops, manufactures, leases, and sells electric vehicles and energy generation and storage systems in the United States and internationally. The company has a market cap of $1.4 trillion, operates in two segments, Automotive and Energy Generation and Storage, and offers electric vehicles, as well as sells automotive regulatory credits; and non-warranty maintenance services and collision, automotive insurance services, and more.

Companies with a market cap of $200 billion or more are typically referred to as "mega-cap stocks." TSLA fits perfectly into that category, with its market cap exceeding this threshold and reflecting its substantial size and influence in the auto manufacturers industry.

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Despite its strength, TSLA stock slipped 28.4% from its 52-week high of $498.83, reached on Dec. 22, 2025. The stock is down 19.2% over the past three months, underperforming the S&P 500 Index's ($SPX) 2.8% rise during the same time frame.

Moreover, TSLA has lagged behind the broader market over the longer term. The stock has grown 3.3% over the past 52 weeks, while SPX delivered 19.3% returns over the same time frame.

TSLA has been trading below its 200-day and 50-day moving averages since the start of July.

On July 22, TSLA stock plunged 14.5% following the release of its mixed Q2 2026 earnings. The company's revenue for the quarter amounted to $28.2 billion, which surpassed the Street's estimates. However, investors' confidence was heavily lost when the stock's adjusted EPS for the quarter came in at $0.33 and failed to meet Wall Street's forecasts, raising concerns about profitability issues.

When stacked against its peer, General Motors Company (GM), TSLA has underperformed. Over the past year, GM stock has surged 48.6%.

Wall Street currently has a moderately bullish view of the stock. Among the 42 analysts tracking TSLA, the overall consensus stands at a "Moderate Buy." Its mean price target of $397.17 offers a 12.5% upside potential from current prices.

On the date of publication, Aritra Gangopadhyay did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com