Tesla Market Cap Surpasses Daimler

DEC 5 2018 BY MARK KANE 26

Tesla’s market value is now higher than Daimler

Step-by-step Tesla becomes bigger and bigger company, which sells more cars (and more of its other products too). It is reflected by the market capitalization (share price times the number of issued shares).

Most recently, the value of Tesla exceeded the value of Daimler, despite Daimler being way bigger in terms of… everything – volume of sales, profits, history. However, not the size or current results are a determining factor in market cap.

Market cap:

  • Tesla – $63.18 billion
  • Daimler – $61.27 billion

The most important factor that influences share value is the belief of the future outcome. Tesla, as a technological company and biggest manufacturer of all-electric cars, is expected to grow strong in the future, which pulls the market value up.

This is why from a market perspective Tesla can be more valuable than Daimler, Ford or BMW.

Source: Google Finance, Electrek

Categories: Daimler, Tesla

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26 Comments on "Tesla Market Cap Surpasses Daimler"

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Who else is bigger? Only Toyota?

& VW, by market cap.

Toyota @ $175B and VW @ $87B

Market cap. means little about a company. Apple was the larget company based on market cap., but now Microsoft is. Yet Apple has about $100 billion more in cash. Market cap. changes by the minute. Let GM/VW/BMW announce new EV’s and Tesla market cap will fall.

Their announcements have been demonstrated to be meaningless bluster time and time again – the stock market no longer takes them seriously, so there’s no reaction to them.

When Tesla reveals the Model Y, on the other hand, that’ll be a serious announcement, and I expect you’ll see the stock jump by 10-50% (not sure how much that’s already priced in or not.)

Even so if you took their announcements as if true as stated; they outsource the largest value add component, the battery. So great they bend a lot of metal making profit for someone else.

Apple’s 100 billion “more” cash is captured in the Market Cap, otherwise you would be double counting per Corporate Finance Theory.

Are you thinking of enterprise value?

“Let GM/VW/BMW announce new EV’s and Tesla market cap will fall.”

Actually, the more traditional ICE car makers promote EV’s and make EV’s more mainstream, the more Tesla will benefit.

Both Tesla and those companies you listed will get the majority of their sales out of declining ICE car sales for the foreseeable future. The bigger the market share is for EV’s vs. ICE sales, the more chances Tesla can increase their sales. It is not a zero-sum gain for Tesla, like it is for ICE car makers who lose an ICE sale for every EV sold.

Instead, Tesla’s pool of potential buyers just continues to grow as ICE car makers help make EV’s more mainstream.

Tesla market cap has no sense at all, so do not expect wise reactions from the market. Most Tesla shareholders are people who think it is the new Apple or Amazon, you cannot argue with them, they are just believers. It was the same when the housing bubble. So great opportunity for short selling.

Toyota market cap ~ $197 billion.

While one goes up another goes down, it’s obvious why, says Doctor Werner Von Braun.

It is dumb to take a snap shot of one day as far as market cap goes.

Amazon’s market cap moves more than the entire value of Tesla in 1 day, it doesn’t mean Amazon suddenly is worth less by $60Billion.

That is why Market cap is for amateurs. Enterprise and book value are far more meaningful.

still pretty impressive for a car company in its toddler years in the US

Car companies in general has low premium on pricing, thus lower market cap. Tesla is more than 10 years old now.

Companies such as Netflix has FAR higher Market cap. Even companies such as Lowe’s have higher market cap. But that doesn’t they are worth more.

Even the recently fallen GE has slightly higher market cap than Tesla.

Market cap is the most misleading metric in the stock market.

Fortune 500 and various other indexes are often determined by revenue, not by market cap.

The counter example is that NIO which is nothing more than an ADR from Chinese EV startup. It has a marketcap of $7Billion. Is it worth anything close to it? Absolutely NOT.

That is an old toddler… 😛 More like an adolescent car company.

I believe Tesla’s chart covers several years.

“Enterprise and book value are far more meaningful.”

Only experienced liquidators (or value investors) use book value, otherwise only fools use book value.

Here is the number one reason to never use book value: when a company acquired another company, the target’s book value goes to the acquirer’s balance sheet at “market value” per acquisition accounting under US GAAP. That means the acquirer’s balance sheet has assets of different value: some at original book value and others at recent market value. The balance sheet’s book value is a hodgepodge of different values.

Separately we know from Corporate Finance Theory book value is not as helpful as market value. For example, when Apple overtook Research in Motion (makers of Blackberry smartphones) in the smart phone market, the executives at RIM ought to WRITE DOWN the book value of their assets immediately but chose to wait years until it was so EFFEN obvious RIM book value did not reflect reality.

In summary, be wary of anyone who suggests using book value.

Am I missing something ,but book value is essentially set by the company, and market capitalisation is set by the stock market. One is subject to fudging by management (that plant we shuttered and gutted is still worth what it was when it was running) the other is subject to irrational exuberance as predicting the future is impossible (rumours of Tesla flying car drive up stock)

In the short run, the market value is volatile and unpredictable but in the long run, the market forces works just fine.

If you recall, you don’t have to invest in OVERVALUED stock and if the market is in irrational exuberance, then count your blessings and put STOP orders on your positions.

You can’t control market valuations, but you control when to buy and sell.

Well Tesla had sales of 11 billion in sales 2017 and I would expect sales will top 20 billion in 2018. So 45% growth is amazing. Plus I would expect 4th quarter to be profitable.

Your graphs of Tesla and Daimler are apples and oranges with different and misleading timescales and price ranges. You might want to superimpose them on the same one chart with the Tesla timescale. 2) Also consider using a logarithmic scale, so a steady 10% increase or decrease is a straight line, not a misleading curve up or downward. (A non-log scale is an old trick used to fool beginner investors).

Then I have a huge market cap on income for my flying car then

Every market cap comparison between Tesla and all traditional car maker is always an apples vs. oranges comparison.

Tesla owns their own sales, distribution, and repair centers, and an energy and battery side. In order to compare market cap, you would have to add back in the market cap of the independent and corporate car dealerships.

EV’s are the next smartphone. Look how fast everyone bought those. Many people waiting for next round of less expensive EV’s. GM and Ford are downsizing to help with the billions in infrastructure to switch to EV’s.

“Tesla is expected to grow strong in the future” Really? People will stop buying Toyota, Mercedes, BMW, Audi etc… when demand really breaks up?