Tesla's USD939 Billion Valuation Lead Over Toyota Is Almost Gone
Two and a half years ago, Tesla was worth almost USD1 trillion more than Toyota Motor, the world's second-most valuable automaker.
Lately, that lead has been shrinking fast.
Tesla's edge over Toyota narrowed to about USD83 billion before the start of regular US trading Tue. After the close, the electric-vehicle maker is expected to report its first decline in quarterly revenue in 4 years and a 40% plunge in operating earnings.
Tesla's market value lead over Toyota peaked at USD939 billion in early Nov 2021, just after a massive order from Hertz Global Holdings Inc. sent the EV manufacturer's valuation soaring past USD1 trillion for the first time. Hertz went on to buy fewer Teslas than planned and still got burned by Elon Musk's price cuts before starting to unwind its bet late last year.
Toyota has drawn criticism for biding its time on cars entirely powered by batteries and wagering that consumers will be more open to its gas-electric hybrids. Its strategy has paid off in recent months as EV sales growth has slowed.
"Tesla has been a master of understanding that the market favours narratives over the short term," said David Wagner, a portfolio manager at Aptus Capital Advisors. "But more recently, as the tide retreated, the company has started to show that the overall growth profile may not be as robust as originally thought."
Toyota has been the world's top-selling automaker for 4 years running, delivering 11.2 million cars and trucks in 2023. That's more than six times the 1.81 million vehicles Tesla sold last year.
The Japanese company's shares are up 36% this year, lifting its market capitalization to ¥57.28 trillion (USD370 billion).
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
Moo Contributor
Follow me to get useful analysis, learn TA and make profitable trades.
Maximise profit 利润最大化
6602Followers
57Following
23KVisitors
Follow
Dramericanjesus : Toyota builds a better vehicle and produces as many cars a day as Tesla does a quarter. Think they have a much bigger lead over Tesla.
bullrider_21OP Dramericanjesus: Tesla's premium valuation hinges on it solving robotaxis. Without which, it will be worth a lot less.
MonkeyGee : I wonder what happened
bullrider_21OP MonkeyGee: Tesla rebounding after being oversold. Bulls are trying to burn shortists. But downtrend will resume after that.
MonkeyGee bullrider_21OP: if we break 146 the 100 day Ema, no support below that until 100.