TSLA vs TSM: Which Is the Better Buy?
Side-by-side comparison of Tesla, Inc. and Taiwan Semiconductor Manufacturing Company Limited — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-04-22.
Tesla, Inc. · Consumer Cyclical
$387.51
-45.0% upside to fair value
Grade D
VS
Taiwan Semiconductor Manufacturing Company Limited · Technology
$366.24
+45.0% upside to fair value
Grade C
High Quality
QuantHub Verdict
TSM has more upside to fair value
(+45.0%).
TSM trades at a lower forward P/E
(27.2x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
TSLA |
TSM |
| Current Price |
$387.51 |
$366.24 |
| Fair Value Estimate |
$213.13 |
$531.05 |
| Upside to Fair Value |
-45.0%
|
+45.0%
|
| Market Cap |
$1,454.1B |
$1,899.5B |
| Forward P/E |
330.0x
|
27.2x
|
| EV / EBITDA |
122.9x
|
17.3x
|
| Price / Sales |
15.3x
|
12.8x
|
| Price / FCF |
233.8x
|
51.6x
|
| Revenue Growth YoY |
-3.1%
|
+36.5%
|
| Gross Margin |
18.0%
|
61.9%
|
| Operating Margin |
4.6%
|
53.2%
|
| Return on Equity |
4.8%
|
36.9%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
0.43%
|
1.94%
|
| Analyst Consensus |
Hold
|
Strong Buy
|
Investment Thesis
Tesla, Inc. is a leading global manufacturer of electric vehicles, energy storage, and solar products, led by CEO Elon Musk since 2008. The company has a mixed business quality profile with a strong brand and innovation leadership but faces significant challenges including declining automotive revenue, which fell nearly 10% year-over-year in 2025, and a 3.1% revenue decline in the most recent qua…
Taiwan Semiconductor Manufacturing Company Limited (TSMC) is the world's leading pure-play semiconductor foundry, commanding approximately 60% of the global advanced node foundry market. The company benefits from a durable competitive moat driven by its pioneering foundry model, massive scale, advanced manufacturing capabilities, and strong customer relationships with major technology firms. TSMC…
Accumulation Zones
| Metric |
TSLA |
TSM |
| Zone Low |
$159.85 |
$398.29 |
| Zone High |
$181.16 |
$451.39 |
| In Buy Zone? |
No
|
Yes
|