NOW vs. TSLA

Last updated Aug 1, 2026

NOW (ServiceNow, Inc) and TSLA (Tesla, Inc.) are both stocks. NOW operates in Software - Application (Technology), while TSLA operates in Auto Manufacturers (Consumer Cyclical). Over the past 10 years, NOW returned 22.48%/yr vs 35.29%/yr for TSLA. Their 0.33 correlation means their historical movements had little consistent relationship.

Performance

NOW vs. TSLA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in ServiceNow, Inc (NOW) and Tesla, Inc. (TSLA). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, NOW achieves a -27.39% return, which is significantly higher than TSLA's -30.80% return. Over the past 10 years, NOW has underperformed TSLA with an annualized return of 22.48%, while TSLA has yielded a comparatively higher 35.29% annualized return.

NOW

• 1D: 1.05%
• 1M: 5.13%
• 6M: -4.94%
• YTD: -27.39%
• 1Y: -41.03%
• 3Y*: -1.97%
• 5Y*: -1.10%
• 10Y*: 22.48%
• ALL TIME*: 25.09%

TSLA

• 1D: 0.76%
• 1M: -26.83%
• 6M: -27.69%
• YTD: -30.80%
• 1Y: 0.95%
• 3Y*: 6.03%
• 5Y*: 6.32%
• 10Y*: 35.29%
• ALL TIME*: 40.79%

*Multi-year figures are annualized to reflect compound growth (CAGR)

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
NOW ServiceNow, Inc	$3.29B	$2.53B	$2.93B
TSLA Tesla, Inc.	$15.40B	$15.32B	$18.68B

NOW vs. TSLA - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
NOW ServiceNow, Inc	-27.39%	-27.75%	50.05%	81.96%	-40.18%	17.93%	94.97%	58.56%	36.55%	75.40%
TSLA Tesla, Inc.	-30.80%	11.36%	62.52%	101.72%	-65.03%	49.76%	743.44%	25.70%	6.89%	45.70%

Correlation

The correlation between NOW and TSLA is 0.10, which is low. Their historical price movements had little consistent relationship.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.10
Correlation (3Y) Balances recent behavior with more history.	0.24
Correlation (5Y) Shows whether the relationship held over a longer period.	0.36
Correlation (10Y) Provides a long-term view across more market conditions.	0.34
Correlation (All Time) Calculated using the full available price history since Jun 29, 2012	0.33

Over the past year, the correlation between NOW and TSLA has dropped to 0.10 - well below their long-term average of 0.33, suggesting their price drivers have been diverging.

Fundamentals

Market Cap NOW : $115.00B TSLA : $1.23T
EPS NOW : $1.60 TSLA : $1.08
PE Ratio NOW : 69.50 TSLA : 288.20
PEG Ratio NOW : 0.59 TSLA : 35.26
PS Ratio NOW : 7.88 TSLA : 10.62
PB Ratio NOW : 6.17 TSLA : 12.68
Total Revenue (TTM) NOW : $14.73B TSLA : $103.62B
Gross Profit (TTM) NOW : $11.02B TSLA : $19.53B
EBITDA (TTM) NOW : $2.75B TSLA : $10.41B

Return for Risk

NOW vs. TSLA — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

NOW

NOW Risk / Return Rank: 14
NOW Sharpe Ratio Rank: 11
NOW Sortino Ratio Rank: 13
NOW Omega Ratio Rank: 14
NOW Calmar Ratio Rank: 16
NOW Martin Ratio Rank: 16

TSLA

TSLA Risk / Return Rank: 44
TSLA Sharpe Ratio Rank: 45
TSLA Sortino Ratio Rank: 42
TSLA Omega Ratio Rank: 41
TSLA Calmar Ratio Rank: 46
TSLA Martin Ratio Rank: 45

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

NOW vs. TSLA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for ServiceNow, Inc (NOW) and Tesla, Inc. (TSLA). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	NOW	TSLA	Difference
Sharpe ratio: Return per unit of total volatility	-0.76	0.02	-0.78
Sortino ratio: Return per unit of downside risk	-0.95	0.36	-1.31
Omega ratio: Gain probability vs. loss probability	0.88	1.04	-0.16
Calmar ratio: Return relative to maximum drawdown	-0.72	0.02	-0.75
Martin ratio: Return relative to average drawdown	-1.20	0.06	-1.26

NOW vs. TSLA - Sharpe Ratio Comparison

The current NOW Sharpe Ratio is -0.76, which is lower than the TSLA Sharpe Ratio of 0.02. The chart below compares the historical Sharpe Ratios of NOW and TSLA, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

NOW vs. TSLA - Drawdown Comparison

The maximum NOW drawdown since its inception was -64.54%, smaller than the maximum TSLA drawdown of -73.63%. Use the drawdown chart below to compare losses from any high point for NOW and TSLA.

Drawdown Indicators

	NOW	TSLA	Difference
Max Drawdown Largest peak-to-trough decline	-64.54%	-73.63%	+9.09%
Max Drawdown (1Y) Largest decline over 1 year	-56.82%	-39.10%	-17.72%
Max Drawdown (3Y) Largest decline over 3 years	-64.54%	-53.77%	-10.77%
Max Drawdown (5Y) Largest decline over 5 years	-64.54%	-73.63%	+9.09%
Max Drawdown (10Y) Largest decline over 10 years	-64.54%	-73.63%	+9.09%
Current Drawdown Current decline from peak	-52.48%	-36.47%	-16.01%
Average Drawdown Average peak-to-trough decline	-14.18%	-22.72%	+8.54%
Ulcer Index Depth and duration of drawdowns from previous peaks	34.39%	15.31%	+19.08%

Volatility

NOW vs. TSLA - Volatility Comparison

The current volatility for ServiceNow, Inc (NOW) is 17.63%, while Tesla, Inc. (TSLA) has a volatility of 20.43%. This indicates that NOW experiences smaller price fluctuations and is considered to be less risky than TSLA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	NOW	TSLA	Difference
Volatility (1M) Calculated over the trailing 1-month period	17.63%	20.43%	-2.80%
Volatility (6M) Calculated over the trailing 6-month period	48.58%	34.55%	+14.03%
Volatility (1Y) Calculated over the trailing 1-year period	54.24%	46.36%	+7.88%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	44.54%	59.65%	-15.11%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	41.17%	59.43%	-18.26%

Dividends

NOW vs. TSLA - Dividend Comparison

Neither NOW nor TSLA has paid dividends to shareholders.

Tickers have no history of dividend payments

Financials

NOW vs. TSLA - Profitability Comparison

The chart below illustrates the profitability comparison between ServiceNow, Inc and Tesla, Inc. over time, highlighting three key metrics: Gross Profit Margin, Operating Margin, and Net Profit Margin.

NOW - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Aug 2026, ServiceNow, Inc reported a gross profit of 2.82B and revenue of 3.99B. Therefore, the gross margin over that period was 70.7%.

TSLA - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Aug 2026, Tesla, Inc. reported a gross profit of 4.75B and revenue of 28.24B. Therefore, the gross margin over that period was 16.8%.

NOW - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Aug 2026, ServiceNow, Inc reported an operating income of 162.00M and revenue of 3.99B, resulting in an operating margin of 4.1%.

TSLA - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Aug 2026, Tesla, Inc. reported an operating income of 398.00M and revenue of 28.24B, resulting in an operating margin of 1.4%.

NOW - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Aug 2026, ServiceNow, Inc reported a net income of 298.00M and revenue of 3.99B, resulting in a net margin of 7.5%.

TSLA - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Aug 2026, Tesla, Inc. reported a net income of 1.11B and revenue of 28.24B, resulting in a net margin of 4.0%.

Frequently Asked Questions

Can I hold both NOW and TSLA in my portfolio?

NOW and TSLA have a correlation of 0.10, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, NOW or TSLA?

TSLA has higher volatility (20.43%) compared to NOW (17.63%). In terms of maximum drawdown, NOW dropped -64.54% vs TSLA's -73.63%.

Which has better risk-adjusted returns?

TSLA currently has the higher Sharpe Ratio (0.02 vs -0.76), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.