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 2026-07-17.
Tesla, Inc. · Consumer Cyclical
$400.49
-1.1% upside to fair value
Grade D
VS
Taiwan Semiconductor Manufacturing Company Limited · Technology
$409.74
+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
(38.8x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
TSLA |
TSM |
| Current Price |
$400.49 |
$409.74 |
| Fair Value Estimate |
$396.15 |
$594.12 |
| Upside to Fair Value |
-1.1%
|
+45.0%
|
| Market Cap |
$1,504.1B |
$2,125.1B |
| Forward P/E |
334.1x
|
38.8x
|
| EV / EBITDA |
124.0x
|
17.6x
|
| Price / Sales |
15.4x
|
14.5x
|
| Price / FCF |
214.9x
|
58.4x
|
| Revenue Growth YoY |
+15.8%
|
+36.0%
|
| Gross Margin |
19.1%
|
61.9%
|
| Operating Margin |
5.0%
|
53.2%
|
| Return on Equity |
4.8%
|
36.9%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
0.47%
|
1.71%
|
| Analyst Consensus |
Buy
|
Strong Buy
|
Investment Thesis
Tesla, Inc. is a leading global electric vehicle manufacturer and energy solutions provider, led by CEO Elon Musk since 2008. The company maintains a strong position in the EV market with a unique fast-charging and software ecosystem, although its EV market share is declining amid intensifying competition. Tesla's business quality is medium due to its narrowing moat and modest profitability, with…
Taiwan Semiconductor Manufacturing Company Limited (TSM) is a leading semiconductor foundry specializing in advanced chip manufacturing technologies. The company exhibits high business quality with a durable competitive moat driven by cost advantages, intangible assets, and strong brand recognition. It demonstrates robust profitability with a net margin of 47.0% and a return on equity of 36.9%. R…
Accumulation Zones
| Metric |
TSLA |
TSM |
| Zone Low |
$297.11 |
$445.59 |
| Zone High |
$336.73 |
$505.00 |
| In Buy Zone? |
No
|
Yes
|