Tesla has a market cap of $704B while GM has a market cap of $50B.

Tesla has a P/E ratio of 61.87 while GM has a P/E ratio of 4.96.

Yet, what do the books say?

GM has almost 2x the revenue of Tesla. Tesla missed its EPS targets by -16.15%. Meanwhile, GM exceeded EPS targets by 14.49%.

If that’s not enough, GM has a greater amount of assets and much more cash flow than Tesla.

Despite this, based purely on market cap, Tesla is 14x more valuable than GM despite drastically less revenue, assets, and cash flow.

Now I’m not going to speculate on whether $TSLA or $GM are overvalued or undervalued.

However, market sentiment is not consistent with what the financials of these companies tells us.