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Meta passes Tesla with a $1.5 trillion market cap while shares fall 1.7%; Tesla down 2.3% and 12.3% YTD. See why earnings and AI spend matter.
Meta’s market value topped $1.5 trillion on Wednesday, $605.16 per share, after Tesla’s stock slipped more than 2 % — the shift came from Tesla’s decline, not Meta’s gain, putting both giants under earnings pressure【1】.
| At a glance | |
|---|---|
| Market cap | > $1.5 trillion (Meta) |
| Share price | $605.16 (Meta) |
| Stock move | Meta ‑ 1.7 % ↓, Tesla ‑ 2.3 % ↓ |
| YTD change | Meta ‑ 8.5 % ↓, Tesla ‑ 12.3 % ↓ |
Meta’s $1.5 trillion valuation eclipses Tesla’s after the latter’s share price fell from a year‑high of $438 to a lower level, marking a 12.3 % drop since the start of the year. Meta’s own shares are down 8.5 % in the same period, trading near the midpoint of a $520‑$796 range that began last July. Neither company posted a price rise to achieve the crossover; the shift was purely a result of Tesla’s sharper decline【1】.
Both firms face earnings tests in July. Meta will report on July 29, where analysts will scrutinize AI infrastructure spending and the nascent cloud‑computing unit that aims to sell spare compute capacity. Tesla’s earnings are due July 22, with investors watching whether its recent delivery surge and robotaxi rollout can justify a valuation that trades at over 200 times forward earnings, far higher than Meta’s roughly 19 times forward earnings【1】. The contrast highlights Meta’s reliance on existing advertising profits versus Tesla’s dependence on future mobility ventures.
While Meta’s AI and cloud ambitions are still unproven, its operating margin stands at 41 % after a 30 % rise in operating income to $22.9 billion in Q1, driven by 33 % revenue growth to $56.31 billion. Tesla, by contrast, posted a 4.2 % operating margin and 16 % revenue growth in its latest quarter, underscoring the disparity between current profitability and forward‑looking valuations【3】.
The crossover signals that investors are weighing profitability against growth bets: Meta’s solid earnings base versus Tesla’s high‑multiple future expectations. The upcoming earnings reports will clarify whether AI and cloud investments can sustain Meta’s valuation or if Tesla’s futuristic projects can justify its premium.
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AI-assisted synthesis by the TrendWatcher Editorial Desk · sourced from 3 outlets · Jul 11, 2026 · How we report
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