Tesla is the only Magnificent Seven stock down in 2026
As of early October 2026, Tesla (TSLA) stands as the sole underperformer among the seven largest tech stocks — known collectively as the 'Magnificent Seven.' While Apple and Nvidia have seen gains exceeding 23%, and Microsoft has risen by about 7%, Tesla's shares are down roughly 23% year-to-date. Despite rising vehicle deliveries in Q2, which increased by 25% to nearly half a million units, Tesla’s profitability is lagging significantly behind its peers. Tesla reported second-quarter revenue of $28.2 billion — up 26% from the prior year and outpacing Apple, Microsoft, Amazon, and Alphabet in growth rate terms. However, operating income fell by 57%, to around $398 million, with an operating margin shrinking to just 1.4%. This contrasts sharply with companies like Nvidia, which saw a more than doubling of its operating profit. Tesla’s capital expenditures are also rising rapidly — expected to exceed $25 billion in 2026 as the company invests heavily in AI initiatives and autonomous driving projects such as Robotaxi. Despite these efforts, Tesla's stock trades at an elevated price-to-earnings ratio of around 155 based on next year’s expectations, compared to a much lower multiple for Nvidia.
Tickers: $AAPL $AMZN $GOOGL $META $MSFT $NVDA $TSLA
Topics: Magnificent Seven Operating Income Revenue Growth Stock Market Tesla