From Nasdaq: 2025-05-13 04:50:00

Tesla and Apple are part of the “Magnificent Seven” of dominant U.S. companies. Analysts predict 4% downside for Tesla at $307 per share and 14% upside for Apple at $236 per share. Despite short-term views, Apple is seen as the better buy over the next 12 months. However, long-term investors should consider key factors.

Tesla’s investment thesis focuses on electric vehicles, autonomous driving, and humanoid robots. The company faces challenges with EV market share loss and CEO Elon Musk’s political involvement. Still, upcoming affordable models and reduced DOGE involvement could turn things around. Tesla plans to launch an autonomous ride-hailing service in Austin next month, aiming to disrupt the market dominated by Alphabet’s Waymo.

Wall Street projects Tesla’s adjusted earnings to grow by 15% annually through 2026, making the current valuation of 140 times earnings seem high. However, opportunities in autonomous driving and humanoid robots could lead to accelerated earnings growth in the future. With potential revenue projections, Tesla investors could see substantial gains in the future.

Apple’s investment thesis centers on its strength in smartphones, brand moat, and pricing power. The company monetizes its installed base with services like iCloud storage and Apple Pay. Apple also has an opportunity to capitalize on AI through its Apple Intelligence platform. However, headwinds like tariffs and an antitrust lawsuit may impact earnings growth.

Wall Street forecasts Apple’s earnings to increase by 6% annually through 2026. The current valuation of 30 times earnings may seem expensive, leading some to believe the stock is overvalued. While progress in AI monetization or reduced tariffs could change the outlook, some investors are cautious about Apple’s future potential.



Read more at Nasdaq: Tesla Stock vs. Apple Stock: The Best buy Right Now, According to Wall Street