Tesla Surpasses Other Automakers in Market Capitalization
Before its stock market decline, Tesla was valued at nearly $1.5 trillion, more than all other publicly traded automakers combined, which totaled about $1.45 trillion. However, on September 4, TSLA shares fell by nearly 6%, reducing Tesla's market capitalization to around $1.4 trillion, making it slightly lower than that of other automakers, valued at approximately $1.446 trillion. At the end of 2020, Tesla was worth about $669 billion, just slightly more than the combined value of the next seven largest automakers. Operationally, Tesla ranks last among the ten largest global automakers by revenue, with BYD selling more vehicles. Tesla's price-to-earnings ratio stands at around 344, an unattainable multiple for traditional automakers. Elon Musk is betting on Tesla's future in autonomous robotaxis, the humanoid robot Optimus, and artificial intelligence. By 2025, about 87% of Tesla's revenue will still come from automotive sales. This gap creates a risk: if the projects take longer than expected, the correction could be severe, bringing Tesla back to traditional valuation multiples.
-- Price
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