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Tesla or General Motors? Check Out This Stunning Chart
Tesla or General Motors? Check Out This Stunning Chart

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General Motors (GM) exploded higher last week after highlighting electric vehicles and the concept for a flying car.

General Motors (GM), weekly chart, with relative strength bars compared with Tesla (TSLA).
General Motors (GM), weekly chart, with relative strength bars compared with Tesla (TSLA).

This chart compares the price action of GM with Tesla (TSLA). It uses weekly candles and the relative strength indicator set to 1-period intervals. That means each relative strength bar shows how much GM outpeformed or underperformed TSLA each week.

According to this analysis, GM just had its best week against TSLA since emerging from bankruptcy in 2010. GM also had the highest weekly share volume ever.

Tesla (TSLA)General Motors (GM)
Price / Book50x1.6x
Price / Revenue28x0.6x
Price / Earnings1,580x9x

Consider other data points comparing the two companies in this chart to the right.

Obviously TSLA and GM are very different companies. But as GM becomes more environmentally friendly, investors may pay higher valuations. Last week might have represented a big step in that direction.

About the author

David Russell is VP of Market Intelligence at TradeStation Group. Drawing on two decades of experience as a financial journalist and analyst, his background includes equities, emerging markets, fixed-income and derivatives. He previously worked at Bloomberg News, CNBC and E*TRADE Financial. Russell systematically reviews countless global financial headlines and indicators in search of broad tradable trends that present opportunities repeatedly over time. Customers can expect him to keep them apprised of sector leadership, relative strength and the big stories – especially those overlooked by other commentators. He’s also a big fan of generating leverage with options to limit capital at risk.