Remove Tesla’s non-repeatable profits, and the stock has never been more expensive—now boasting a ‘core’ PE of 632

Tesla posted GAAP net earnings of $3.79 billion, down 75% from the peak of $15 billion for 2023. In 2025, Tesla pocketed $1.45 billion in credits after tax, plus $69 million from the sale of digital assets, for a total of $1.51 billion. After subtracting those non-operating items, Tesla booked just $2.28 billion in “bedrock,” repeatable earnings. At its current market cap of $1.44 trillion, Tesla’s selling at an adjusted PE of 632 ($1.44 trillion divided by $2.28 billion). At a “core” multiple that’s 80% higher, Tesla easily beats Palantir for offering minimal pennies in profit for every dollar you’re paying for the shares.