Stunning Variations Between Tesla & 20 Prime Automakers — Market Cap vs. Income & EBIT

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I ran throughout some surprising comparisons tonight. Apparently, somebody shared the opposite day that Tesla’s market cap is greater than the mixed market caps of the following 20 automakers. We’ve written about this sort of factor up to now, however it has been some time and I didn’t understand Tesla’s market cap ($1.4 trillion) had risen to this degree — a better quantity than the market cap of Toyota, BYD, Ferrari, Mercedes-Benz, Suzuki, Volvo, BMW, GM, Volkswagen Group, Mahindra, Ford, Porsche, Hyundai, Honda, Daimler Truck, Kia, Stellantis, Bajaj Auto, and Suzuki mixed ($1.2 trillion). Beautiful.

George Noble determined so as to add on to that by evaluating these corporations’ income and EBIT. Listed below are how issues evaluate:

• “$TSLA revenues $98B vs $2.244T for the opposite 20 automakers mixed.”
• “$TSLA EBIT $7B vs $144B for the opposite 20 mixed.”

Noble summarizes: “So let me get this straight. $TSLA is price greater than the opposite 20 automakers mixed. Nonetheless the opposite 20 corporations mixed generate 23x in revenues and 20x in EBIT. Sounds about proper.”

That’s surprising, is it not?

Nonetheless, none of these corporations are creating robots that can wipe out poverty and carry out surgical procedure on anybody once they want it…. Or one thing like that. Right here’s what Elon Musk stated on the Tesla quarterly convention name yesterday on that matter:

“You possibly can really create a world the place there isn’t a poverty, the place everybody has entry to the best medical care. Optimus will likely be an unimaginable surgeon, for instance. And picture if everybody had entry to an unimaginable surgeon.”

Another person posted an fascinating graph displaying that Tesla’s working margin has been declining fairly constantly up to now three years.

That doesn’t look good. It’s nonetheless properly above 0%, however the monetary development, once more, isn’t good.

One in all two issues has to occur: 1) Tesla has to do issues that actually break by means of and make its $1.4 trillion market cap half-sensible, or 2) if this can be a bubble constructed on hype way more than Tesla’s precise enterprise, the bubble has to pop finally. Proper?