Tesla vs. GM: Only One Automotive Stock Has the Edge in 2026

2 months ago 31

Vandita Jadeja

Fri, July 24, 2026 astatine 9:00 AM CDT 4 min read

Quick Read

Tesla missed Q2 EPS by 40% arsenic escaped currency travel went negative; GM bushed estimates for the 5th consecutive 4th and raised full-year guidance.
Trading astatine a P/E of 344 versus GM's 29, Tesla needs robotaxi and Optimus to present portion operating borderline sits astatine conscionable 1.4%.
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Tesla (NASDAQ: TSLA) and General Motors (NYSE: GM) reported Q2 2026 results wrong a time of each other. Tesla posted grounds deliveries of 480,126 vehicles but missed connected earnings. GM raised full-year guidance for the 2nd clip successful 2026 connected the backmost of motortruck and SUV demand.

Record Deliveries for Tesla, Record Cash for GM

Tesla's apical enactment looked healthy. Revenue roseate 25.5% twelvemonth implicit twelvemonth to $28.24 billion, and Services & Other jumped 50% to $4.58 cardinal astatine a grounds 14% gross margin. Under the surface, though, operating borderline collapsed to 1.4% arsenic operating expenses surged 47% connected AI infrastructure, R&D, and stock-based comp tied to the 2025 CEO Performance Award.

Non-GAAP EPS came successful astatine $0.33 versus a $0.5367 estimate, a miss of astir 40%. Free currency travel flipped to antagonistic $1.09 billion. FSD connect complaint supra 55% of caller North American deliveries is simply a agleam spot, but the bundle communicative has to transportation a precise dense capex load.

GM's 4th looked dependable by comparison. Adjusted EPS of $3.57 topped the $3.1844 estimate, the 5th consecutive beat. North America carried the freight: $39.9 cardinal successful revenue, 8.6% EBIT margin, and adjusted EBIT up 42.7%.

Adjusted car escaped currency travel climbed 78% to $5.03 billion. GAAP nett income fell 31% due to the fact that CEO Mary Barra took a $2.28 cardinal EV strategical realignment complaint to right-size artillery capacity. That is simply a uncommon admittance from a bequest automaker, and investors rewarded it.

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Growth Bet vs. Cash Machine

Lens	Tesla	GM
Core Bet	Robotaxi, Optimus, FSD bundle	Trucks, SUVs, disciplined superior returns
Capex Posture	$25B fund nether scrutiny	Trimming EV overbuild
Shareholder Returns	None disclosed	$2.8B buybacks H1, $0.18 dividend
Valuation	P/E 344	P/E 29

Tesla is spending similar an AI hyperscaler with a car institution attached. Robotaxi is present unsupervised successful six US metros including Austin, Dallas, Houston, Miami, Orlando, and Tampa, and Optimus lines are being installed astatine Fremont.

GM is folding Cruise backmost into the mothership and moving its motortruck franchise for cash. Tesla shares are down 16.83% twelvemonth to date. GM is up 69.53% implicit the past year.

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