Tesla, Nvidia, and Apple betas and their sources

Tesla Inc. (TSLA)

beta: 2.02

Source: [The Motley Fool](https://www.fool.com/investing/2024/08/03/tesla-zigs-while-the-competition-zags-is-the-ev-ju/)


Nvidia Corporation (NVDA)

beta: 1.75

Source: [Google Finance](https://www.google.com/finance/quote/NVDA:NASDAQ)


Apple Inc. (AAPL)

beta: 1.30

Source: [Zacks](https://www.zacks.com/stock/chart/AAPL/fundamental/beta)


Speculation on why the betas of the three companies differ


Company financials ( Each company's financial condition and debt ratio also affect β. Companies with high debt ratios tend to be more sensitive to economic fluctuations and have high β. In addition to this, we believe that differences in industry and market influences are behind the above.


Tesla is an electric vehicle (EV) manufacturer and has a high β because it is sensitive to technological innovation and market fluctuations. In addition, it is expected to grow in emerging markets and is highly sensitive to market fluctuations.


Nvidia is a manufacturer of semiconductors and graphics processors, and is particularly influenced by the AI ​​and gaming markets, so it has a high β. In addition, it is highly sensitive to market fluctuations because it is strongly influenced by technological innovation.


Apple is a major consumer electronics and software company with a relatively stable revenue source, so it has a lower β than the other two companies. In addition, it has stable revenue in existing markets, so it is relatively less sensitive to market fluctuations.


We speculate that the combination of these factors results in different β for each company.

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