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This fact brief was originally published as an experiment to test the concepts behind fact briefs.
Readers should be aware that while there is still a lot of useful information in fact briefs like this one, not all of them reflect Gigafact's current methods and standards for fact briefs. If you come across any that you feel are out of date, don't hesitate to contact us at support@gigafact.org.
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FACT BRIEF

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

By Austin Tannenbaum
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YES

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.

This fact brief is responsive to conversations such as this one.
Sources
Companies Market Cap Largest automakers by market capitalization: 31 May 2022 15:07:36 UTC (archive)
GuruFocus Tesla PE Ratio: 31 May 2022 15:10:43 UTC (archive)
NASDAQ TSLA Analyst Research: 31 May 2022 15:13:47 UTC (archive)
CNN Tesla Inc Forecast: 31 May 2022 15:16:23 UTC (archive)
EV Adoption US EV Sales Percentages of Total Vehicle Sales By Brand: 31 May 2022 15:52:09 UTC (archive)
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Gigafact
Between 2020 and 2022, under close editorial supervision, Gigafact contracted a group of freelance writers and editors to test the concepts for fact briefs and provide inputs to our software development process. We call this effort Gigafact Foundry. Over the course of these two years, Gigafact Foundry writers published over 1500 fact briefs in response to claims they found online. Their important work forms the basis of Gigafact formats and editorial guidelines, and is available to the public on Gigafact.org. Readers should be aware that while there is still a lot of relevant information to be found, not all fact briefs produced by Gigafact Foundry reflect Gigafact's current methods and standards for fact briefs. If you come across any that you feel are out of date and need to be looked at with fresh eyes, don't hesitate to contact us at support@gigafact.org.
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About fact briefs published on Gigafact
Fact briefs are short, credibly sourced summaries that offer “yes/no” answers in response to claims found online. They rely on publicly available, often primary source data and documents. Fact briefs are created by contributors to Gigafact —a nonprofit project looking to expand participation in fact-checking and protect the democratic process. See all fact briefs here.