Shocking Differences Between Tesla & 20 Top Automakers — Market Cap vs. Revenue & EBIT - CleanTechnica

The article highlights a striking disparity between Tesla’s market capitalization and that of the next 20 largest automakers combined. Tesla’s market cap has surged to approximately $1.4 trillion, surpassing the combined market cap of major automotive companies such as Toyota, Volkswagen, BMW, Ford, and others, which total around $1.2 trillion. However, when comparing financial fundamentals, Tesla’s revenue ($98 billion) and EBIT ($7 billion) are significantly lower than the combined revenues ($2.244 trillion) and EBIT ($144 billion) of these 20 automakers. This means Tesla is valued far higher despite generating roughly 23 times less revenue and 20 times less EBIT than its peers combined. The article suggests this discrepancy raises questions about Tesla’s valuation sustainability. Tesla’s operating margin has been declining over the past three years, which could indicate challenges ahead. The author posits two possible outcomes: Tesla must achieve breakthrough innovations to justify its lofty valuation, or the current market enthusiasm may represent a