For reasons that may not be related to financial performance, Tesla stock price has been dropping the past few days. With the most recent drop on 11/22/2022, Tesla’s PE ratio is now approaching that of an established auto manufacturer Ferrari. This company needs no introduction and is famous for their F1 race victories and sporty cars. Ferrari’s latest price is $216.36 and PE ratio is 43.63 with Forward PE 55.14. Tesla finished the day on 11/22/2022 at $169.91, for a PE of 52.34 and a Forward PE at 34.63. Tesla is growing much faster than Ferrari and to see their PE being about the same may suggest Tesla is not priced correctly relative to its income generating potential in coming years. Tesla Forward PE is actually lower than Ferrari’s. A faster growing company normally is assigned a higher forward PE. Next month, Tesla begins sales of its Semi Truck and add to its source of income. Next year, Tesla will begin selling the highly anticipated and uniquely shaped Cybertruck with an estimated 1.3 million reservations. The prospects for these two companies are far apart but their PEs are grouping them into the same bucket. This anomaly will be corrected at some point in the future.