Tesla Inc. (NASDAQ:TSLA)

The share price exhibits a notable upward trajectory over the analyzed period. Initially valued at $1.62 in early 2011, it experiences gradual increases with some fluctuations until around 2019, where a sharp rise begins. The share price peaks at $302.45 in early 2022, experiences a decline to $173.22 by early 2023, then begins to recover and reaches $400.28 by early 2025, indicating significant growth and increased market valuation over the long term.

The earnings per share (EPS) show a different pattern, characterized by initial negative values that indicate losses sustained during the earlier years. From -$0.11 in 2011, the EPS remains negative and somewhat volatile, with the lowest point around -$0.77 in early 2018. Starting in 2020, the company transitions into profitability, with EPS turning positive at $0.25, followed by steady improvement to $4.71 in early 2024, before a slight decrease to $2.2 projected for early 2025. This trend reflects a substantial turnaround and growth in profitability over time.

The price-to-earnings (P/E) ratio, available only for the later years when the company reports positive earnings, reflects high valuation multiples. The ratio is extremely elevated at 1149.47 in early 2021, which suggests investor expectations for substantial future earnings growth despite relatively low earnings at that time. Subsequently, the P/E ratio decreases significantly to 169.91 in early 2022 and continues to fall to around 40.55 in early 2024, followed by an increase to 181.57 projected for early 2025. This indicates changing market confidence and valuation adjustments as earnings improve, although the valuation remains comparatively high.

Summary of trends

The share price demonstrates strong growth, especially from 2019 onward, reflecting increased investor confidence and market capitalization.

EPS moves from consistent losses to sustained profitability starting in 2020, showing operational improvements and financial health enhancement.

The P/E ratio is exceptionally high when positive earnings begin, consistent with a growth company, and decreases as earnings rise, although staying elevated compared to typical market averages, suggesting ongoing high expectations.