Surprising Variations Between Tesla & 20 High 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 larger than the mixed market caps of the following 20 automakers. We’ve written about this sort of factor prior to now, but it surely has been some time and I didn’t understand Tesla’s market cap ($1.4 trillion) had risen to this degree — the next 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 here 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 value greater than the opposite 20 automakers mixed. Nevertheless the opposite 20 corporations mixed generate 23x in revenues and 20x in EBIT. Sounds about proper.”

That’s surprising, is it not?

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

“You’ll be able to truly create a world the place there isn’t any poverty, the place everybody has entry to the best medical care. Optimus will probably be an unimaginable surgeon, for instance. And picture if everybody had entry to an unimaginable surgeon.”

Another person posted an attention-grabbing graph displaying that Tesla’s working margin has been declining fairly constantly prior to now three years.

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

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