Tesla Is the Only Magnificent Seven Stock in the Red for 2026

TSLA is the lone Magnificent Seven stock in the red for 2026, down 23% year to date even as sales grew 26% year-over-year.

The disconnect sits in profitability. TSLA's operating income fell 57%, and operating margins have compressed to 1.4%. Revenue growth is not translating into earnings, which is the core of the bear case.

Spending is part of the squeeze. TSLA is putting more than $25 billion into AI and robotaxi initiatives, and the source notes those programs have not yet produced measurable returns. Interpretation: investors are being asked to fund a long-dated payoff while near-term margins erode, and the market appears to be marking down TSLA for that trade-off.

Valuation sharpens the problem. TSLA trades at a P/E near 155, a multiple that looks stretched against its current financial performance and against the other Magnificent Seven names: AAPL, NVDA, MSFT, GOOGL, META, and AMZN, which are all positive for the year. A 23% drawdown has not compressed the multiple enough to match a 1.4% margin profile.