For a while this question has been on my mind because honestly speaking Tesla is the largest player in the EV industry with a market share of 67% even though they are down from their all time of of 80% their still basically the leading company when it comes to EV's but for how long Tesla only has a little over 1.91 million Tesla's on roads today and competition from well established car brands like Mercedes, Volkswagen, Ford and Porsche posses a threat to Tesla but compared to those companies Tesla's value is the only one to have ever surpassed a $ 1 trillion dollar valuation and as of As of October 2023, Tesla has a market capitalization of $797.05 billion, making it the world's 8th most valuable company by this metric making tesla the sixth company in US history to achieve this milestone. It is also the second fastest company to hit the $1 trillion mark, reaching it just more than 12 years after its 2010 initial public offering. By comparison, the world's most valuable car company by market capitalization before Tesla was Toyota, which had a market cap of around $208 billion in July 2020. Therefore, one might argue that Tesla is overvalued relative to its peers in the automotive industry, as it has a much higher market cap than any other car maker and Tesla's revenue for the first quarter of 2023 was $23.329 billion², and its revenue for the second quarter of 2023 was $24.927 billion¹. Therefore, Tesla's revenue for the first half of 2023 was $48.256 billion, which is a 45.5% increase from the same period in 2022, when it reported revenue of $33.19 billion¹. Tesla's revenue for the full year of 2022 was $81.462 billion¹, which was a 51.35% increase from 2021¹. Tesla is expected to release its third quarter results on October 20, 2023
(797.05 – 48.256) / 48.256) × 100 = 1546.86%
this is a calculation I made to find out the difference between Tesla's earnings and it's market cap to try to get a good idea of if the company is overvalued or not and difference in percentage between Tesla's market capitalization and its earnings for the first half of 2023 is approximately 1546.86%. This indicates that Tesla's market capitalization is significantly higher than its earnings, reflecting investor expectations for future growth
So is Tesla overvalued or is it undervalued??
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