Tesla has a market value of regarding $389 billion (Getty)
Market value continued toTesla electric car company on top International car companies Despite the major setback that occurred to its stock during 2022.
According to “Bloomberg” agency, despite the decrease company share By 65% over the past year, the electric car maker’s rapid rise in 2020 and 2021 has left it with a market capitalization of $389 billion, greater than the market capitalization of Toyota Motor, General Motors and Stellantis NV. and Ford Motor combined.
Tesla shares are still trading at a higher valuation compared to the expected earnings of most major technology giants, which means that the company will witness rapid growth as CEO Elon Musk promised to dominate the sector in the coming years.
In the short term, the company faces increasing challenges, including rising costs, competition and the risk that a recession will slow demand, as well as draining Musk’s efforts and money in the acquisition of the social network Twitter, which prompted him to sell a percentage of his shares in Tesla.
The portfolio manager at Fernwood Investment Management, Catherine Faddis, said Tesla was priced as high as possible, adding that people are asking why the stock was trading at such a difference from its real value.
Those concerns led to a massive sell-off at Tesla that sent shares down more than 36% last December, the biggest monthly decline since its initial public offering in 2010.
However, electric cars are still expected to be the future of the global auto industry.
This prompted investors not to easily abandon Tesla stock, despite the advice of a number of financial analysts and brokers, at the beginning of the year to abandon the stock when its price reaches $ 350, according to data collected by “Bloomberg”, only 11% abandoned the stock until the end of the year despite It fell to regarding $123.
Tesla shares are trading so far at more than 24 times the estimated earnings within 12 months per share, while General Motors and Ford shares hover around 5 and 6 times the expected profits during the same period, which reflects confidence in the company’s increased sales in the coming years.
While Tesla’s revenues are expected to increase in 2023 by up to 36%, the expected revenues of General Motors and Ford will rise by less than 10%.
