Is Tesla's market value higher than that of the next eight automakers combined?

Tuesday, May 31, 2022
By Austin Tannenbaum
This Fact Brief is responsive to conversations such as this one.

As of May 31, 2022, the $794.14 billion market capitalization of Tesla exceeds that of the next nine leading automakers combined. These include: 

  • Toyota: $228.99 billion
  • BYD (China-based): $119.42 billion
  • Volkswagen: $110.92 billion
  • Mercedes-Benz: $75.5 billion
  • BMW: $56.55 billion
  • General Motors: $56.30 billion
  • Ford: $54.06 billion
  • Stellantis (parent of Fiat, Chrysler, Jeep, Peugeot, others): $46.88 billion

Market capitalization is the total value of a company's shares.

Most equity-market analysts contend that Tesla is overvalued, pointing to its price-earnings ratio, a commonly used valuation metric that compares a company's actual share price to a theoretical share price calculated by dividing its earnings by its total shares. According to investment research company GuruFocus, Tesla's price-earnings ratio is higher than 93% of 914 companies in the vehicle and parts industry.

However, surveys of analysts released in late May by NASDAQ and CNN found that most continue to rate Tesla stock a "buy" given its strong sales and relatively high profit margins. While other automakers have begun selling their own electric vehicles, Tesla continues to dominate the U.S. market, having sold more EVs than all the other major companies combined.

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