(Bloomberg’s opinion) – Almost everything spoke about Tesla Inc.
The majority of 61 analysts, following the electric vehicle and clean energy company led by CEO Elon Musk, say investors should avoid buying stocks. The plunge sales at home and abroad show that 31% of car buyers, including 41% of women identified as Democrats, are unlikely to buy Tesla after Musk, the unelected leader of the Department of Government Efficiency, has become pariah both inside and outside the White House. President Donald Trump has accused the donor of his biggest campaign of being “a massive drug addict.” Grok, a Musk artificial intelligence-powered chatbot, said Tesla is in a “unstable position” with a 15% to 25% risk of “Death Spiral.”
Media omits the uninfringing outlook, an EV startup founded in 2003 by engineers Martin Eberhardt and Mark Tarpning. While it may be everything as a global sales leader, Toyota Motor Corporation is about a quarter of Tesla’s $1.04 trillion market capitalization. The top 10 car manufacturers, excluding Tesla, are $812 billion, or 78% of Tesla’s value.
In all discussions about Tesla’s lost cache and “demand problem,” the Model Y will remain the EV model for sale globally in 2025. This is the third year in a row if the trend is held, and shows no sign of losing a position to lead sales over legacy automakers in China, Europe or the US. Shareholders simply look at financial history that is not moving through fateful history. Last year, Tesla’s $97.7 billion revenues exceeded China’s BYD Co., which sold more than 30 times the revenues of a decade ago, surpassing the second-fastest growth company.
Tesla revenues before interest, taxes, depreciation and amortization (EBITDA) totaled $14 billion, more than 300 times the company’s profits a decade ago. No. 2 BYD has grown 15 times based on EBITDA. This item measures the profitability of your core business as it excludes revenue impact from funding and tax decisions. Tesla’s current market capitalization has increased 31 times more than ten years ago. This is another way to say that the top 10 automakers aren’t competing with Tesla’s revenue growth, profits and market value, according to data compiled by Bloomberg.
When Tesla announced its biggest revenue disappointment in five years on April 22, it was 27 cents share in the first quarter, or 38% lower than the average estimate of 43 cents – stocks rose 5.37% to shareholders, and the financial impact of autonomous driving will be materialized in the second half of 2025. Data compiled by Bloomberg shows that Maps, and Tesla, are projecting a market share of 99%, or at least 90%, potentially 99%, or at least 90%, in the self-driving car market.
So when you’re asked, “Why is Tesla’s market value four times that of Toyota?” Bloomberg Terminal’s Document Search Analysis Tool, AI-Driven Functions, was addressed to AI-Driven Functions, with full attribution and transparency, with AI-Driven Functions access to analysis.
Tesla’s AI and Autonomous Technology Vision
Leadership and future growth expectations
Vertical integration and manufacturing benefits
Just as Tesla relies on 125,665 employees in the US, Europe and Asia, it is maintained by the original foresight of Everhardt and later Musk, the founder who provided the investments that allowed Tesla to disrupt and transform the automotive industry.
“In general, stock investors in particular want to see an absolute commitment and belief in a vision for a better future,” Nicholas Colas, co-founder of Datatrek Research, which has covered the automotive industry since the 1980s, wrote a note to his client last week. “They also want to be part of the winner’s story, especially if the story has a redness element. That’s something that Argos and spreadsheets don’t understand, and hero-driven companies are often invaluable.”
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This column reflects the author’s personal views and does not necessarily reflect the opinions of the editorial board or Bloomberg LP and its owners.
Matthew A. Winkler, editor of Honorary Prime Minister of Bloomberg News, writes about the market.
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