Major Car Maker Comparisons: Just a quick “chart break” to share comparative data on the major auto makers in terms of market caps, margins, valuations and growth rates. There’s been a lot of talk about how disproportionately large Tesla’s market cap is to other car makers, but when you take into consideration Tesla’s strong margins and higher growth rate, the story becomes very different. Here is the chart.
In our view, as we wrote in our recent Tesla report, the shares are very volatile (they can still fall more), but the valuation really isn’t that unreasonable anymore following the 70% share price decline from its all-time highs.