General Motors vs Tesla (GM vs TSLA) 2026: Stock Returns, Risk & Volatility

Q: Which is a better investment: GM or TSLA?

Over the past year, GM looks like the better investment: it had higher total return (GM +68.0% vs TSLA +31.2%) and a higher Sharpe ratio (GM 1.59 vs TSLA 0.73). On risk, GM was less volatile (GM 34.0% vs TSLA 47.5%), GM had a smaller max drawdown (GM -16.2% vs TSLA -29.9%), and GM had less severe losses on the worst 5% of days (Expected Shortfall of GM -3.92% vs TSLA -6.39%).

Written by Gale Finance Team

Reviewed by Sid Kalla CFA Charterholder

Quick answer

Which is a better investment: GM or TSLA?

Over the past year, GM outperformed TSLA. GM returned +68.0% compared with TSLA’s +31.2%. GM had the better risk-adjusted return, with a Sharpe ratio of 1.59 versus TSLA’s 0.73. GM was less volatile than TSLA, and GM had a smaller max drawdown than TSLA.

Total Return

GM +68.0%

TSLA +31.2%

Sharpe Ratio

GM 1.59

TSLA 0.73

Annualized Volatility

GM 34.0%

TSLA 47.5%

Max Drawdown

GM -16.2%

TSLA -29.9%

Metric winners: Total Return: GM; Sharpe Ratio: GM; Annualized Volatility: GM (less volatile); Max Drawdown: GM (smaller drawdown).

GM Total Return

↑ +68.0%

TSLA Total Return

↑ +31.2%

Relative Performance of GM vs TSLA (Normalized to 100)

GM TSLA

Normalized to 100 at start date for comparison

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Key Takeaways

Total Return: GM delivered a +68.0% total return, while TSLA returned +31.2% over the same period. GM outperformed on total returns.
Risk-Adjusted Return (Sharpe Ratio): GM had a higher Sharpe (1.59 vs 0.73), indicating better risk-adjusted performance.
Volatility (Annualized): TSLA was more volatile, with 47.5% annualized volatility, versus 34.0% for GM.
Maximum Drawdown: GM's maximum drawdown was -16.2%, while TSLA experienced a deeper drawdown of -29.9%.
Tail Risk (VaR & Expected Shortfall): At the 5% level (daily log returns), GM's VaR was -2.87% and its Expected Shortfall (CVaR) was -3.92%; TSLA's were -4.48% and -6.39%. VaR is the cutoff; Expected Shortfall is the average move on the worst days.
Skew & Kurtosis: Skew: GM 1.33 vs TSLA -0.45. Excess kurtosis: GM 8.67 vs TSLA 2.28. Negative skew leans downside; higher excess kurtosis means fatter tails.
Tail Days & Extremes: 2σ tail days (down/up): GM 2/6, TSLA 4/6. Worst day: GM -8.12% (2025-07-22) vs TSLA -14.26% (2025-06-05). Best day: GM +14.86% (2025-10-21) vs TSLA +8.23% (2025-06-23).
Risk ratios: Sortino - GM: 2.83 vs. TSLA: 1.06 , Calmar - GM: 4.23 vs. TSLA: 1.05 , Sterling - GM: 3.97 vs. TSLA: 1.40 , Treynor - GM: 0.50 vs. TSLA: 0.17 , Ulcer Index - GM: 5.74% vs. TSLA: 12.45%

Investment Comparison

If you invested $10,000 in each asset on April 25, 2025:

GM $16,796.15 +68.0%

TSLA $13,115.28 +31.2%

Difference: $3,680.87 (GM ahead)

General Motors vs Tesla Performance Over Time

Metric	GM	TSLA
30 Days	2.5%	-2.4%
90 Days	-1.5%	-16.8%
180 Days	12.9%	-13.8%
1 Year	68%	31.2%

Shorter time frames can show different leaders as market conditions change. Consider your investment horizon when comparing performance.

General Motors vs Tesla Correlation

Average Correlation

weakly correlated

0.25

Current (30-day) 0.48

30-day rolling range -0.08 to +0.79

General Motors and Tesla are weakly correlated over the past year. With a correlation of 0.25, these assets show meaningful independence, offering diversification benefits when held together.

For portfolio construction, this weak correlation suggests that combining GM and TSLA could reduce overall portfolio variance. However, correlations can increase during market stress.

Metric	Value
Current (30-day)	0.48
Average (full period)	0.25
Minimum (30-day rolling)	-0.08
Maximum (30-day rolling)	0.79

Correlation measures how closely two assets move together. Values near +1 indicate strong co-movement, near 0 indicates independence, and negative values indicate inverse movement. Current, minimum, and maximum figures are 30-day rolling correlations on shared daily returns.

Drawdown

Maximum Drawdown

-16.2%

TSLA

-29.9%

General Motors experienced its maximum drawdown of -16.2% from 2026-01-27 to 2026-03-13. It has not yet recovered to its previous peak.

Tesla experienced its maximum drawdown of -29.9% from 2025-12-16 to 2026-04-08. It has not yet recovered to its previous peak.

Smaller drawdowns and faster recoveries indicate lower downside risk and greater resilience during market stress.

General Motors vs Tesla Volatility (GM vs TSLA)

GM Volatility

34.0%

±2.14% 1-day vol

TSLA Volatility

47.5%

±2.99% 1-day vol

1-day volatility (1σ)

±2.14%

TSLA

±2.99%

General Motors's 34.0% annualized volatility translates to about ±2.14% one-standard-deviation daily volatility.

Tesla's 47.5% annualized volatility translates to about ±2.99% one-standard-deviation daily volatility.

TSLA had the wider volatility profile over this window. That means its day-to-day return distribution was broader; GM was calmer, but lower volatility does not by itself mean better returns.

Treat the ± daily figure as a one-standard-deviation estimate from historical returns, not a forecast or expected absolute daily move. For context, 15-18% annualized volatility is roughly ±1% one-standard-deviation daily volatility.

Risk-adjusted ratios

Sharpe Ratio of GM and TSLA

Sharpe Ratio: GM vs. TSLA

Return per total volatility

Sharpe gives us excess return per unit of risk. Upside and downside volatility both count as risk.

Higher is better

excess return / total volatility

Formula

\displaystyle \mathrm{Sharpe} = \frac{\mathbb{E}[R] - R_f}{\sigma_R}

Sharpe ratio measures return per unit of risk (volatility). A higher Sharpe indicates better risk-adjusted performance. GM had a higher Sharpe (1.59 vs 0.73), indicating better risk-adjusted performance.

A Sharpe above 1.0 is generally considered good, above 2.0 is excellent. Negative Sharpe means the asset underperformed the risk-free rate. Calculated on each asset's full 365-day lookback of available prices and annualized using the asset calendar (365 for crypto, 252 trading days for equities/ETFs/metals).

Sortino Ratio of GM and TSLA

Sortino Ratio: GM vs. TSLA

Return per downside volatility

Sortino keeps the return-over-risk idea, but only returns below the target rate count as volatility.

Higher is better

excess return / downside volatility

Formula

\displaystyle \mathrm{Sortino} = \frac{\mathbb{E}[R] - R_f}{\sigma_{\mathrm{down}}}

Sortino ratio measures return per unit of downside risk. Unlike Sharpe, it only counts downside deviation (returns below the target return). GM had better downside-adjusted returns.

A higher Sortino is better. It's useful when upside volatility is common (crypto is the obvious example). Downside deviation: GM 19.1% vs TSLA 32.7%. Calculated on each asset's full 365-day lookback of available prices, using the daily risk-free rate as the target return, and annualized using the asset calendar (365 for crypto, 252 trading days for equities/ETFs/metals).

Calmar Ratio of GM and TSLA

Calmar Ratio: GM vs. TSLA

CAGR per worst drawdown

Calmar compares CAGR against the single deepest peak-to-trough loss over the period.

Higher is better

CAGR / max drawdown

Formula

\displaystyle \mathrm{Calmar} = \frac{\mathrm{CAGR}}{|\mathrm{MaxDD}|}

Calmar ratio compares CAGR to maximum drawdown. Higher Calmar means more return per unit of worst drawdown. GM posted the higher Calmar ratio.

Calmar is computed on each asset's full 365-day lookback and uses the max drawdown over that same window.

Sterling Ratio of GM and TSLA

Sterling Ratio: GM vs. TSLA

Return per average drawdown

Sterling smooths the drawdown penalty by using average drawdown events instead of only the worst one.

Higher is better

excess annual return / average deep drawdown

Formula

\displaystyle \mathrm{Sterling} = \frac{\mathrm{CAGR} - R_f}{\overline{D}_{>10\%}}

Sterling ratio measures excess return per unit of average drawdown (typically drawdowns worse than 10%). GM posted the higher Sterling ratio.

Sterling uses average drawdown events deeper than 10% and subtracts the risk-free rate to report excess return.

Treynor Ratio of GM and TSLA

Treynor Ratio: GM vs. TSLA

Excess return per market beta

Treynor divides excess annualized return by beta — the sensitivity of the asset to broad-market moves. The slope shown is each asset’s beta vs SPY.

Higher is better

excess return / market beta

Formula

\displaystyle \mathrm{Treynor} = \frac{\mathbb{E}[R] - R_f}{\beta}

Treynor ratio measures excess return per unit of market risk (beta) instead of total volatility. GM posted the higher Treynor ratio.

Treynor uses beta vs the S&P 500 (SPY) on shared dates and the average 3-month Treasury rate as the risk-free rate.

Ulcer Index of GM and TSLA

Ulcer Index: GM vs. TSLA

Drawdown pain

Ulcer Index is a risk index, not a return-over-risk ratio. Lower means smaller and shorter drawdowns.

Lower is better

root-mean-square drawdown

Formula

\displaystyle \mathrm{UI} = \sqrt{\mathbb{E}[D_t^2]}

Ulcer Index captures drawdown depth and duration. Lower Ulcer Index means less drawdown pain. GM had the lower Ulcer Index (less drawdown pain).

Ulcer Index is computed from each asset's drawdown series over the full lookback window.

Tail Risk & Distribution Shape (1-Year): General Motors vs. Tesla

This section looks at the shape of daily returns, not just the average. Tail stats are computed per asset on its own daily series (crypto includes weekends). We use daily log returns $\ln\left(\frac{P_t}{P_{t-1}}\right)$ so multi-day moves add cleanly.

Definitions: Value at Risk (VaR), Expected Shortfall, skew, kurtosis, and fat tails.

Tail Risk & Distribution Shape: GM vs. TSLA (1-Year)

Actual daily return tails

The bars are real daily log-return observations from the article window. Darker bars are observations at or beyond each asset’s 5% VaR cutoff.

Observed returns

VaR marks the 5th percentile loss cutoff; Expected Shortfall averages the observations beyond that cutoff.

Formula

\displaystyle \mathrm{VaR}_{5\%}=Q_{0.05}(r_t),\quad \mathrm{ES}_{5\%}=\mathbb{E}[r_t\mid r_t\le \mathrm{VaR}_{5\%}]

Metric (1-Year)	GM	TSLA
5% VaR (daily log return)	-2.87%	-4.48%
5% Expected Shortfall (CVaR)	-3.92% (worst 13 days)	-6.39% (worst 13 days)
Skew	1.33	-0.45
Excess kurtosis	8.67	2.28
2σ tail days (down / up)	2 / 6	4 / 6
Worst day	-8.12% (2025-07-22)	-14.26% (2025-06-05)
Best day	+14.86% (2025-10-21)	+8.23% (2025-06-23)

Downside co-moves (2σ) — 1-Year

Computed on shared dates only (n=249). A “2σ downside move” means a shared-close log return more than 2 standard deviations below that asset’s own mean on this shared-date series. Dates below show simple returns (%) for readability.

Downside co-move map: GM vs. TSLA (2σ)

Shared-close daily returns

Dots mark actual downside days: asset-colored dots are one-sided downside moves, and red dots are joint downside days. Grey dots add sampled shared-return context when available. The shaded lower-left zone shows where both GM and TSLA crossed their own 2σ downside threshold.

2σ

Show downside tail dates

Dates below are shared-date observations. The “Date” is the period end (close). Tail thresholds are computed on log returns, but the table shows simple returns (%) for readability. Returns are computed from the previous shared close to this one (for example, Friday → Monday includes weekend moves).

Days when both GM and TSLA had a big down day (2σ)

None in this window.

Days when GM had a big down day

Date (interval)	GM	TSLA
2025-07-22	-8.12%	+1.10%
2026-02-06 → 2026-02-09	-4.23%	+1.51%

Days when TSLA had a big down day

Date (interval)	GM	TSLA
2025-06-05	-0.88%	-14.26%
2025-07-03 → 2025-07-07	-2.02%	-6.79%
2025-07-24	-1.49%	-8.20%
2025-11-13	+0.07%	-6.64%

Read this as “how ugly the ugly days get”, not as a precise forecast. One-year samples are small, so tail estimates are inherently noisy.

Full Comparison of General Motors vs. Tesla (1-Year)

Metric	GM	TSLA
Total Return	+68.0%	+31.2%
Annualized Volatility	34.0%	47.5%
Sharpe Ratio	1.59	0.73
Sortino Ratio	2.83	1.06
Calmar Ratio	4.23	1.05
Sterling Ratio	3.97	1.40
Treynor Ratio	0.50	0.17
Ulcer Index	5.74%	12.45%
Max Drawdown	-16.2%	-29.9%
Avg Correlation to S&P 500	0.32	0.56
5% VaR (daily log return)	-2.87%	-4.48%
5% Expected Shortfall (CVaR)	-3.92%	-6.39%
Skew	1.33	-0.45
Excess kurtosis	8.67	2.28
2σ tail days (down / up)	2 / 6	4 / 6

Audit this calculation

Formulas, inputs, and conventions used to compute the metrics on this page.

Inputs & conventions

Shared window for pair metrics: 2025-04-25 → 2026-04-23 (last shared close).
Rolling correlation sample (shared closes): 220 rolling 30-day values (from 249 shared daily returns).
Annualization (days/year): GM: 252 days/year; TSLA: 252 days/year.
Risk-free rate: Uses the 3-month U.S. Treasury yield (FRED: DGS3MO), averaged over each asset’s window:

GM: 4.17% over 2025-04-25 → 2026-04-23.

TSLA: 4.17% over 2025-04-25 → 2026-04-23.
Volatility drag (rule of thumb): Estimated from annualized volatility (simple returns). For the log-return framing, see Log returns.

GM: ≈ -5.8%/yr

TSLA: ≈ -11.3%/yr
Data alignment: No forward fill. Correlation and tail co-moves are computed on shared closes only.
For cross-calendar pairs (e.g., crypto vs stocks), weekend/holiday moves roll into the next shared close.
Return conventions: Volatility/Sharpe/Sortino use simple daily returns. Tail-risk uses daily log returns for distribution stats (but tables show simple returns). Log returns.

Formulas

Daily simple return

r_t = \frac{P_t}{P_{t-1}} - 1

Volatility

\sigma_{ann} = \sigma(r_t)\sqrt{A}

Volatility drag (approx.)

\text{drag} \approx \tfrac{1}{2}\sigma_{ann}^2

Sharpe Ratio

S = \frac{A\,\bar{r} - r_f}{\sigma(r_t)\sqrt{A}}

Sortino Ratio

So = \frac{A\,\bar{r} - r_f}{\sqrt{\mathbb{E}[\min(0,\,r_t - r_f/A)^2]}\,\sqrt{A}}

Maximum Drawdown

MDD = \min_t\left(\frac{P_t}{\max_{s \le t} P_s} - 1\right)

Average Correlation

\rho = \frac{\operatorname{cov}(r^A,\,r^B)}{\sigma_A\,\sigma_B}

Log returns

\ell_t = \ln\left(\frac{P_t}{P_{t-1}}\right)

Notation

$P_t$: Price on day t.
$r_t$: Simple daily return.
$\ell_t$: Log daily return.
$\bar{r}$: Average daily return.
$\sigma(r_t)$: Standard deviation of daily returns.
$A$: Annualization factor (days/year).
$r_f$: Annual risk-free rate.

General Motors vs Tesla: Frequently Asked Questions

Which has higher volatility: GM or TSLA?

TSLA showed higher volatility at 47.5% annualized, compared to 34.0% for GM Over the past year. Higher volatility means larger price swings in both directions.

Does GM provide diversification when held with TSLA?

GM and TSLA are weakly correlated over the past year, with an average correlation of 0.25. This weak correlation suggests meaningful diversification benefits when held together.

How bad are the worst 5% days for GM vs TSLA?

Over the past year, GM's 5% VaR was -2.87% and its 5% Expected Shortfall was -3.92% (worst 13 days). TSLA's were -4.48% and -6.39% (worst 13 days).

Do GM and TSLA crash together on bad days?

On shared dates (n=249), when TSLA has a 2σ down day, GM also does 0.0% (0/4 days). In the other direction, when GM has one, TSLA also does 0.0% (0/2 days).

Which has better risk-adjusted returns: GM or TSLA?

GM showed better risk-adjusted performance with a Sharpe ratio of 1.59 versus TSLA's 0.73 Over the past year.

Can GM and TSLA be combined in a portfolio?

Yes, though allocation sizing matters. Their weak correlation could meaningfully reduce overall portfolio variance. TSLA's higher volatility (47.5%) means even small allocations can materially impact overall portfolio risk.

Explore our financial glossary

Which is a better investment: GM or TSLA?

Share This Comparison of GM vs TSLA

Relative Performance of GM vs TSLA (Normalized to 100)

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Key Takeaways

Investment Comparison

General Motors vs Tesla Performance Over Time

General Motors vs Tesla Correlation

Drawdown

General Motors vs Tesla Volatility (GM vs TSLA)

Risk-adjusted ratios

Sharpe Ratio of GM and TSLA

Sharpe Ratio: GM vs. TSLA

Sortino Ratio of GM and TSLA

Sortino Ratio: GM vs. TSLA

Calmar Ratio of GM and TSLA

Calmar Ratio: GM vs. TSLA

Sterling Ratio of GM and TSLA

Sterling Ratio: GM vs. TSLA

Treynor Ratio of GM and TSLA

Treynor Ratio: GM vs. TSLA

Ulcer Index of GM and TSLA

Ulcer Index: GM vs. TSLA

Tail Risk & Distribution Shape (1-Year): General Motors vs. Tesla

Tail Risk & Distribution Shape: GM vs. TSLA (1-Year)

Downside co-moves (2σ) — 1-Year

Downside co-move map: GM vs. TSLA (2σ)

Days when both GM and TSLA had a big down day (2σ)

Days when GM had a big down day

Days when TSLA had a big down day

Full Comparison of General Motors vs. Tesla (1-Year)

Inputs & conventions

Formulas

General Motors vs Tesla: Frequently Asked Questions

Which has higher volatility: GM or TSLA?

Does GM provide diversification when held with TSLA?

How bad are the worst 5% days for GM vs TSLA?

Do GM and TSLA crash together on bad days?

Which has better risk-adjusted returns: GM or TSLA?

Can GM and TSLA be combined in a portfolio?